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The month that was:
The market kept going up in July. The Nasdaq went up by about 3.7%, the S&P 500 went up by about 2.2%, and the Dow was about flat. Both the S&P 500 and the Nasdaq set many new record highs. On July 4th, President Trump signed a big law that extends tax cuts from 2017. The U.S. also announced trade deals with Japan, the European Union, and other countries. On July 30th, the Fed kept interest rates the same for the fifth meeting in a row, even though President Trump has been pushing Fed Chair Powell to cut rates.
On July 31st, a design software company called Figma had its IPO. IPO stands for Initial Public Offering. It is the first time a company sells its shares to the public on the stock market. Before an IPO, a company is "private," which means it is owned only by its founders, employees, and a small group of investors. After the IPO, anyone can buy its shares.
Companies go public to raise money to grow, and to let early investors and employees sell some of their shares. Before the IPO, the company and its bankers pick an IPO price. Figma set its IPO price at $33 a share. But so many investors wanted to buy it that when trading started, the first trade happened at $85, and the stock closed its first day at about $115, up 250%!
IPOs can be exciting, but they are also risky. When a stock jumps that much on the first day, it can be very expensive compared to the company's sales and profits. Many hot IPOs end up falling a lot in the months after they go public, once the excitement fades.
Buys -
Bought 8 FIG at $103.00
I bought Figma on its first day of trading. Figma's design software is used by millions of designers, and its sales are growing fast. I knew it was risky to buy on the first day, so I only bought a small position.
Bought 7 ALSN at $90.42
Bought 5 DHR at $194.54
I added more Allison Transmission and started a small position in Danaher, which makes tools for science labs and hospitals.
Sells -
Sold 21 SAIC at $112.46
SAIC recovered from its lows earlier in the year, and I sold most of my shares for a profit of about 11%.
Sold 6 ACN at $280.51
Sold 10 SBUX at $92.46
Sold 2 SNPS at $592.62
Sold 1 IT at $373.06
I sold some of my older positions in Accenture, Starbucks, and Synopsys to raise cash. I also sold one share of Gartner for a loss.
Buys and Sells -
Bought 20 CMG at $52.40
Sold 20 CMG at $47.70
I bought Chipotle the day before it reported earnings. Chipotle lowered its sales forecast for the year, and I sold my shares right after the report for a loss of about 9%. The next day, the stock fell about 13%. I keep making the mistake of buying right before earnings reports.
Bought 3 UNH at $308.73
Sold 3 UNH at $267.98
Bought 3 TMO at $424.22
Sold 2 TMO at $418.05
Bought 4 DECK at $105.36
Sold 8 DECK at $105.63
I made several trades in healthcare stocks and Deckers this month. UnitedHealth kept falling, and I sold three shares for a loss of about 7%.
Thanks for reading my newsletter!