Dramatic Gilead USO and Gold Stock Movements

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How’s it going everybody this is beat the bush today i’m going to talk about a few stocks including gillette uso and also gold this video is sponsored by weeble if you want to help support this channel check out my referral link down in the video description below wiebel is a free trading app and if you sign up for it you get one free stock if you deposit more

Than $100 you get another free stock gillette stock tumbles after stat report on weak data in rem the severe trial in china now have you been following gillette there’s a lot of biotech companies out there trying to make some sort of therapeutic some sort of vaccine and if any of these companies prove that old there’s work a little bit better than others maybe

They have some trial or something and if they have some my new piece of data all of a sudden their stock jumps up now right now there’s a handful of these companies like 50 to 70 of them that are trying to do the same thing and gillette is one of these companies my take on investing on one of these companies that are promising to have some sort of therapeutic or

Some sort of vaccine is that this is generally a shot in the dark right you just don’t know which company is going to create this solution that would bring us all out of this really really terrible lockdown if you look at their stock price they have some promise over here they’ve been increasing steadily over the past month or so they started off in the beginning

Of february around 65 and right now they’re ending up about 77 even though they have some preliminary reports from stat saying that old their trials didn’t work so well and then anytime you have these news reports sometimes the study could be flawed or something someone’s gonna go back and look at the data and then go hey you didn’t do the study properly the thing

You have to be very careful with any single study is they could administer this drug and there could be an alternate thing that causes people to not die as high a rate as before the best way to prove that these drugs work is that you have to have to try it multiple many many times and prove that they definitely be heal from it that’s all i’m gonna say about these

Drug companies personally i’m not invested in any of these remedies fear is like some sort of an time ilario drug so they had this laying around already so they decided to give it to the current patients that’s having these infections so if you are not in this space it’s probably best to avoid it rather than just go oh let me close my eyes and pick a company and

Then you saw a new somewhere and you think that maybe they have some drug that could potentially do well this is a shot in the dark because there’s a lot of different drugs i could happen to work in the end and there’s gonna be a lot of drugs that could in the end also not work so this is kind of like a gamble because you really don’t know which company is gonna

Come out with a drug that works now let me move on to crude oil futures dipping to below zero if you look at the wall street journal it is somewhat misleading it says us oil costs less than zero after a sharp monday sell-off now when it says us oil it doesn’t mean like you’re gonna go to the gas pump and it says zero dollars and you can fill up for free nor does

It mean that the producers can actually buy oil for free right now this is actually us oil futures futures is a contract where if you buy into it you can either trade it later for some other amount this is a speculative amount or you can hold this contract until expiration and take delivery of that so the contract in question is over here crude oil wti may expire

A ssin for 2020 you can see on the chart over here it dipped way below zero – 37 – $40 per barrel over here now what does this mean it just means that people trading this commodity think that all the space for holding the oil is gonna be filled up and the oil essentially becomes a burden because if someone hands you a pair of oil and you have nowhere to store it


It’s essentially worth less than zero to you so this is what it means for the people that are trading the oil right now if they hold on to this contract and they end up somehow with this oil they have to get rid of it somehow but in reality if you wait until this contract actually expires it’s most likely gonna come up above zero because people are gonna have to

Pay money to physically take possession of this oil you’re not gonna have someone have a barrel of oil they’re gonna give you money to take it away from them you can’t actually buy oil for – dollars over here and also i personally have not traded commodities before but if this is something you want to do you actually have to get a special brokerage account that

Especially meant for trading commodities most brokerages know that you’re only buying this as a speculation and you don’t really actually want to hold like right here i’m not gonna put a barrel oil over here especially if i’m gonna buy like a thousand of them right so there’s no way i’m gonna take possession of this and a broker will know this and then they’re

Gonna essentially buy these contract back from you so nothing physical happened of course some of these contracts when you buy it there’s a contract underneath that says you can either take delivery of the actual underlying product or you can trade it for value most of time what you’re gonna end up doing is before expires it’s gonna be valued at something the

Brokerage will end up buying it from you and then somehow end up in the hands of someone that actually do want to buy these commodities until at the end someone actually takes delivery of the actual product now if you look at robin hood or so5 by the way if you guys are interested in any of these accounts i do have referrals down in the video description below but

These apps actually report some of the most popular traded ticker symbols and over the past week uso happens to be a hotly traded ticker symbol so a lot of people are trading this because the ticker symbol is uso and if you look at the wall street journal article it says us oil right dozen us oil mean you’re gonna trade the new s o ticker symbol it turns out us

Oil really actually meant us oil futures and us oil fund lp is a separate etf fund this is the description of it over here the most important thing here is uso gets exposure to oil using derivatives like aw oil et ps the fund predominantly holds front month futures contracts on wti rolling into the next contract every month similar to our segment benchmark this

Method is particularly sensitive to short-term changes in spot prices which makes us oh a great vehicle for writing short-term moves in crude prices underlying short-term here because you can just easily read this paragraph and go oh short term great okay but after it is it says but long-term holders may want to look at other options and i have to stress this out

So much because all these people on robin hood on sofa they’re buying uso thinking that it’s gonna go up yeah it might have went up mainly only through to speculation because of everybody else piling on into this stock just look at uso over here here today it was at $12 or so and it has been trickling down and down and down until about two dollars and 56 cents

Right now this is like 80% loss and you might wonder wow you know if you held it since maybe march you had a nice 5060 percent loss already so why am i stressing this short-term versus long-term thing because i personally made a mistake trading in some sort of exchange-traded fund that is meant for a short term i initially just kind of brush it off as saying okay

You know it’s just like any other fun you know you can just buy if it happens to go down then you can just hold it for a week or two and then you know maybe it’ll pop back up but the thing is these funds they’re actually designed to keep on going down so if you hold it for a really long time you’re almost guaranteed that it’s always going to lose money so check

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Out uso for the max duration over a 14-year period it started off its life at around $70 now it’s two dollars and 64 cents so if you just kind of eyeball this graph it’s trending downwards it’s not training upwards like berkshire whatnot it’s always gonna go down if you hold on to it you’re almost guaranteed going to lose money now where did i learn this valuable

Lesson from is when i bought t vix which is a volatility stock you are an investor maybe you have a free training app like we bowl robin hood so far whatever and you have this bright idea oh i’m gonna trade in us oil oh i’m gonna trade in volatility oh i’m gonna trade in gold or what not the thing is sometimes these funds they are designed to lose money whoever

Designed these funds if you put money into it they’re actually siphoning money off of this to pay for whatever expenses but if you look at the long-term stock performance of some of these funds that are meant for short-term trading you can see that it just kind of trickles down and down and down and this is exemplified in t vix if you look at t vix over the 1-year

Period it has been trickling down all the way up until this infection scare of 2020 march and then all of a sudden that spiked all the way up to 700 so yes if you happen to hold on to it right around february and you held on to it all the way up you might have had a chance to make a lot of money maybe five to seven fold in a short period of about a month or so but

You know who woulda guessed that volatility is gonna increase so much but i want to really stress the point that this fun this tv is is a short-term fund you really don’t want to hold on to this for more than a few weeks so over here check out the five-year graph of t vix it started its life around $300,000 and right now it’s 267 dollars so let’s say long long time

Ago you bought this stock thinking that you’re gonna hold on to it until 2020 of march because you know that it’s gonna spike and you still would have lost money you can see in this chart that it just kept on going down and down it went down so much that you can’t even see it’s like basically flatlined over there but as a short-term trade yeah once in a while it pops

Up a lot and then you can make money so this funds some sort of exchange-traded investment vehicle thing you have to be super careful same thing with this uso thing if you hold on to this u.s. old thing long term you’re guaranteed to lose money so how would i treat trading in uso or tea vix these stocks don’t allow me to hold onto them long-term because personally

I cannot predict the future too well and i’m sure a lot of people can could not have predicted the future of us oh popping back up a little bit this is just a basic gamble and if you happen to make money good for you and i think you essentially need to treat these funds these short-term funds kind of like a hot coal with gloves on once you hold on to it if you

Hold on to it for too long it’s gonna burn through your gloves and it’s gonna burn you you just kind of like okay okay i’m gonna touch it for like a day or two and then you know you toss it back out to someone else and if you happen to lose money you have to know that if you even if you lose money you have to sell it out because if you just try to keep it longer

And longer thinking that it’s gonna you know somehow make up for it by popping back up maybe a week later in 99.5% of the cases you’re gonna lose more money anyhow when i invest in other kind of assets where it’s an actual company that is gonna appreciate over the long period is that if i happen to lose money short term i still have a card up my sleeve where i

Can go haha i can wait this out i can wait a year i can wait two years they can start paying me dividends and stuff and i can just wait for this to come in i can wait for the stock to come back up but these funds you cannot do this you cannot just wait it out because it’s going to lose your money now let me go back to how this short-term oil dropped to below zero

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Actually affected my ixc holdings a lot of people watching my videos thinking that i invested in oil when in fact i actually invested in an etf fund that buys a lot of different companies and this particular stock you know it keeps its asset value over time currently of course is not doing very well it dropped from let’s say $30 from beginning of this year to a

Low of $15 and right now it’s hovering around 18 dollars and 40 cents and like i said before my buying price is around 20 dollars and 20 cents overall i’m down about 9% and no i have not lost my pants because some people thought that with oil going to zero or two below zero i probably lost my entire principle which is not true i still have like 91 percent of my

Initial principle and these are in companies right these are in oil companies exxon bp shell all this stuff ray and these companies have inherent value to them they also invested in other energy sources right it’s not just oil although it’s mainly oil futures contracts is a bit more volatile and i equate it to kind of like currency trading like multiple times more

Volatile than if you buy a stock and a stock itself it’s pretty darn volatile already right it’s like plus minus 30 percent and then if you look at this futures contract it went down 80 percent so it definitely has a lot more volatility in it than actual stocks now let me move on to look at gold i’m not gonna talk too much about gold but let’s just take a look at

The chart over here this is a fund for buying gold you’re not actually gonna get any gold in the mail or anything after you buy this fun it’s just a fun that invests in gold so you can actually invest in it without having to actually hold on to the gold itself because if you buy the physical gold you have to worry about storage right you gotta put it in a security

Deposit box or maybe you gotta put it in a safe maybe you got to dig a hole or something so when you buy this fun gold is how much is it right now like 1700 and this gold trust gld trades at 163 dollars and i remember beginning of this year is around 145 or so so it’s come up a little bit with the federal reserve pumping money into the system right they just spent

Two trillion dollars of stimulus money this essentially d values your dollar and the us debt is sitting at 24 trillion dollars with the gdp of 20 trillion dollars sometimes you have to be careful with investing gold just because they pump money into the system does not necessarily mean gold is gonna go in lockstep with how much money they pump in sometimes there’s

A lag to this once they put money in it needs to have this trickling effect where your us dollars gets diluted a bit and a strong dollar keeps the gold prices low so just because you have more money in the system you can still have a strong dollar because the us dollar is like a worldwide currency still there are a lot of different aspects to the strength of

The dollar and i’m not gonna go into this just know that gld is just something i personally have invested in before just as a kind of like a proxy to investing in actual gold so you don’t have to take delivery of actual gold in your hands because this is a security concern right holding on to like a big bar of gold again all these talks i talked about are for

Informational purposes only stock values can go up and down thanks for watching this video don’t forget to give me a like if you guys are interested in supporting this channel check out my weibo a referral link down in the video description below don’t forget to give me a comment down below let me know what you guys think of all these stocks i talked about and

That’s always won’t forget to push that subscribe button and ring that bell icon thanks for watching

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Dramatic Gilead USO and Gold Stock Movements By BeatTheBush

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