One of the best ways to invest in a hot IPO, is by not buying an IPO at all.
Sounds odd, right?
But what if we told you there was a cheaper, far more profitable way to invest in red-hot IPOs without ever having to invest in an IPO?
One that invests in 100 of the largest, typically best performing and most liquid U.S. public offerings in the IPOX Global Composite Index – such as the First Trust US IPO Index Fund (FPX). Not only does it provide exposure to IPO excitement, it does so at less cost. Also,
it doesn’t matter if an IPO is hot or a dud, the IPO excitement will often drive the ETF higher.
Look at one of my favorite IPO examples: Twitter (SYM: TWTR).
On November 7, 2013, TWTR stock went public, over-subscribed, over-hyped, with no profit to show. Yet, it still hit the market at 70x sales. And investors still chased it. In fact, after being priced at $26 the night before, the stock began trading at $45.10 a share before jumping to $50.09 the next day. That excitement drove the FPX ETF higher.
Not long after, TWTR would plummet from $50.09 to less than $15. Yet, the FPX ETF continued to push higher because of the excitement, and because it’s well-diversified with other hot IPOs.
Since Twitter went public, we’ve seen many other new, hot IPOs. And we’ve seen some pitiful disasters, too. However, the FPX still pushed higher. Even now, as we wait to see if companies like Stripe, Reddit, Instacart, Chime Financial, and Discord go public, it may be safer to just invest in a safe, well-managed ETF with a strong history of upside, like the FPX.
Instead of getting caught up in the hype of a new IPO, invest safely with the FPX.
Unfortunately, even IPOs are “like a box of chocolates. You never know what you’re gonna get,” once noted in Forrest Gump.
Have you heard about Elon Musk’s Next IPO?
His new company could top a trillion?
Elon Musk has predicted that his new venture – something I’m calling “X-9840” – could become “a trillion dollar company.
Today, only three companies in the US are worth more than $2 trillion. Microsoft… Apple…and Nvidia.
And each of those companies gave their early investors the chance to become millionaires over several decades – starting with just a $1,000 investment.
That’s why I believe Elon is about to mint a new round of millionaires across America with this new venture.
Unfortunately, most people will end up missing out…
Because this has nothing to do with electric vehicles…
Self-driving cars, rockets, brain chips, or satellites.
Click here to see the details because you don’t have much time to act.
Elon has said he could flip the switch “as early as mid 2024” so be ready!
