{"id":30147,"date":"2012-06-11T07:16:05","date_gmt":"2012-06-11T11:16:05","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/06\/motif-investing-how-facebook-is-generating-profits-for-investors-after-all\/"},"modified":"2012-06-11T07:16:05","modified_gmt":"2012-06-11T11:16:05","slug":"motif-investing-how-facebook-is-generating-profits-for-investors-after-all","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/06\/11\/motif-investing-how-facebook-is-generating-profits-for-investors-after-all\/","title":{"rendered":"Motif Investing: How Facebook is Generating Profits For Investors After All"},"content":{"rendered":"

Article by Investment U<\/a> <\/p>\n

\"Motif<\/p>\n

Motif Investing allows people to buy investment ideas and themes, including the most "liked" brands on Facebook (Nasdaq: FB), which rose 20% over the past year.<\/p>\n<\/div>\n

I don\u2019t get to say it often, but the investing herd was spot on last month.<\/p>\n

From Main St. to Wall Street, the resounding majority of people everywhere said they weren\u2019t going to invest a dime in the Facebook<\/strong> (Nasdaq: FB) IPO.<\/p>\n

And it\u2019s a good thing most people didn\u2019t.<\/p>\n

Because after hitting a high of $45 on May 18th, shares have fallen as much as 42%.<\/p>\n

Yet even though buying into Facebook\u2019s IPO would\u2019ve been a huge mistake by today\u2019s standards, the darling of social media just may have a use for investors after all.<\/p>\n

Turning Facebook \u201cLikes\u201d into Profits<\/strong><\/h2>\n

I\u2019ve had a Facebook page for a year and a half now.<\/p>\n

And, yes, I comment and click \u201clike\u201d on things I find interesting or funny. But don\u2019t give me a hard time about it.<\/p>\n

Online news provider, VentureBeat<\/em>, reports 845 million users give out 2.7 billion \u201clikes\u201d and comments every day.<\/p>\n

It\u2019s an incredible amount of information.<\/p>\n

And a new online trading service that just launched Monday has figured out a way to profit from this mountain of data.<\/p>\n

It\u2019s called Motif Investing<\/a>.<\/p>\n

But it\u2019s not exactly just another E*Trade or Scottrade.<\/p>\n

Investing in the Power of an Idea<\/strong><\/h2>\n

Motif Investing allows people to buy into investment ideas and themes (hence the name \u201cmotif\u201d).<\/p>\n

They do this by packaging ideas into collections of 20 to 30 stocks and selling them to investors for $9.95, or about the same price as a single-stock trade on E*Trade.<\/p>\n

For example, Motif\u2019s \u201cFaceboook\u201d portfolio represents the top 20 most \u201cliked\u201d Facebook brands. In 2011, the number of \u201clikes\u201d for these companies nearly doubled. Who knows, maybe it\u2019s not really related that much, but Motif\u2019s \u201cLots of Likes\u201d motif is up 20% over the past year.<\/p>\n

There are also 50 other motifs to choose from. And that number is sure to grow.<\/p>\n

Some of my favorites include how to play the rise in income inequality, preparing for the housing recovery in the U.S., and cashing in on soaring internet usage on mobile phones.<\/p>\n

Motif gets even better too. It allows you to personally customize each of the portfolios to fit your investment needs or preferences.<\/p>\n

So if there\u2019s a stock you don\u2019t like, you don\u2019t have to pray some mutual fund or ETF manger will eventually get rid of it. At any time, you can sell a stock for a one-time processing fee of $4.95. You can also change the weighting of any stock in the portfolios as well.<\/p>\n

These are pretty revolutionary features for the online brokerage industry if you think about it. Can you imagine actually having full control over a mutual fund or ETF? You can become your own Peter Lynch\u2026<\/p>\n

Forbes says, \u201cWhat\u2019s compelling is it actually mimics what many of the best macro hedge fund managers do.\u201d<\/p>\n

It\u2019s true. Motif just puts the power in the hands of individual investor.<\/p>\n

All of these features has attracted some pretty powerful people to the service too.<\/p>\n

Ex-Merrill Lynch boss Sallie Krawcheck is backing the company. There are former Microsoft<\/strong> (Nasdaq: MSFT) executives on board. \u00a0The longest serving chairman of the SEC, Arthur Levitt Jr., is also backing Motif to name a few.<\/p>\n

I can\u2019t say whether or not Motif represents the next era of investing. But I do like where it\u2019s going. And I think, as more investors catch on, Motif could have a significant impact on the future of the online brokerage industry.<\/p>\n

Good Investing,<\/p>\n

Mike Kapsch<\/p>\n

\n<\/a> <\/a> <\/a> <\/a> <\/a>\n<\/div>\n

<\/p>\n

Article by Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by Investment U Motif Investing allows people to buy investment ideas and themes, including the most "liked" brands on Facebook (Nasdaq: FB), which rose 20% over the past year. I don\u2019t get to say it often, but the investing herd was spot on last month. From Main St. to Wall Street, the resounding majority … <\/p>\n

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