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Subject:  Triple Play - Just Don't Do It Date:  5/18/2019  12:29 AM
Author:  CMF_Fuskie Number:  2302 of 2314

They say that patience is a virtue. And that's especially true with newly public stocks.

It may seem tempting to buy Uber (UBER) on Friday — the day of its eagerly anticipated initial public offering. But take one look at Uber rival Lyft (LYFT) and you'll see why that may not be a great idea.

Lyft is now trading about 25% below its IPO price because of concerns about how much money it is losing, competition with Uber and underwhelming results in its first earnings report since going public.

Average investors should watch and wait when it comes to a buzzy IPO instead of diving on the first few days, recommends Jim Price, lecturer and entrepreneur in residence at the University of Michigan Ross' Zell Lurie Institute.

The trade kerfuffle clearly should give investors pause when looking at Chinese stocks. But you shouldn't ignore the world's most populous nation and second largest economy. In fact, China's stock market is holding up just fine so far this year -- despite all the rhetoric from the Trump administration and the new round of tariff increases imposed by the United States and China on one another.

The Shanghai Composite is up 18% this year, better than the Dow and S&P 500. And this benchmark Chinese index has gained nearly 50% over the past five years -- matching the rise of US stocks over the same period. There are some industries in China that might hold up well even if there is no quick resolution to the current trade spat.

Regarding selling in May, one of the worst things that an investor can do is try and time the market. Staying fully invested makes much more sense. Yes, the market historically does better in the fourth quarter. Returns have tended to be solid from October through December as investors anticipate strong sales and profits for Corporate America during the holiday months.

And, sure, this May is off to a rocky start because of US-China trade tension. But it's a myth that stocks will definitely fall during the supposedly sleepy summer months as traders head to the beach.

Who has frequently seen questions about all three topics recently...

Ticker Guide: The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME), MongoDB (MDB), Trip Advisor (TRIP), Vivendi SA (VIVHY), Mimecast (MIME), DHX Media (DHXM), Royce Micro Capital Trust (RMT)
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