I was going to go back to a Google Trends for today’s post but once I saw the number one trending topic was SpaceX stock, I figured I might as well touch on that.
Are you going to invest in SpaceX?
I decided to take a pass on this one and maybe it will end up being a big mistake for me. It’s more the position I’m in and whether or not I feel like adding another highly volatile, high risk-high reward, long term hold. This isn’t just how I see it….this is what the analysts have concluded as well.
At an IPO (initial public offering) of $135, it depends so much on how much you would want to put down on this. Then the question you need to ask yourself (about this stock and many others like it) is what would you do if the stock doubled (is that really going to make a huge difference?) or what if it dropped by half (would this be devastating to you?) Keeping in mind that SpaceX has said it will not pay a dividend and doesn’t plan to anytime in the foreseeable future.
I don’t think the decision to buy or not buy is strong in either direction…..just depends on your risk tolerance. I have a couple of these high-risk, high-reward stocks already in my portfolio…so I’ll pass. What have you decided and why?
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