Spot opportunities for personal investment
When it comes to studying the financial markets, investors frequently have to sift through huge amounts of data and conflicting points of view. How can investors find their way through these waters cluttered with noise? The answer is to look at a few solid, simple-to-understand metrics. These signals aid in evaluating the health of the …
Continue reading “10 Indicators to Gauge Market Health Without Analysis Paralysis”
I would love to know how it all started. Still, we are between the world’s two biggest economies that dramatically influence local markets, consumers, political contexts, and the world. The trade war between China and the US, which saw tariffs as the first stage of the dispute, is now characterized by the playing around in …
Continue reading “Impact of the US-China Trade War on the Economy”
Understanding the difference between “market capitalization” and “market valuation” is essential for investors and anyone analyzing the financial worth of a company. Although these terms may seem similar, they have distinct meanings and applications in the world of finance. Market capitalization, often referred to as market cap, is a straightforward calculation that reflects a company’s …
Continue reading “Is Market Capitalization the Same as Market Valuation?”
Since we earn money each month, it is extremely tempting to increase the investment amount monthly. Probably this should be done until a minimal qualifying investment amount (maybe 50,000 USD or 150,000 USD) is reached. The benefits of flexible amounts are clear: 1. Ability to use new opportunities each month 2. Natural growth of the …
While trend following is good for mid-term investment, fundamental analysis enables some long-term predictions. 1. The power of demographics. Young people generate inflation and growth, aging population is causing deflation and stagnation. By following nations’ demographic it is possible to predict roughly the long term growth trajectory. 2. Diffusion. In healthy economy there is diffusion …
This article shows that US accounts for 52% of total world stocks. With Japan at 7%, UK at 7% and EU at 7% trailing behind. Investing in any non-US market is of higher risk, especially monetary risk, but also growth of developed markets and market manipulation risks come to mind. With highly differentiated monetary politics, …
Continue reading “Is there a good reason to invest worldwide?”
This article shows several interesting points regarding picking oil stocks. MLPs may be interesting like YMLP. Alternatively high risk PBR or low risk XOM can be considered. Even RUSL comes to mind as a possible revenue generator. There will be several good deals, but oil production needs to fall first.
For the last several years simple investment in S&P was a winning strategy. While we advocate smart investing strategies with portfolio rebalancing, there are assets that will usually work for you. Each of these strategies removes you from making active decisions, and places the responsibility on fund managers: 1. Buy BRK.B or IEP or APO …
We discuss using leveraged ETFs for timing and momentum rebalancing. To this end we choose ETFs over low-volatility indices. In high volatility environment leveraged ETFs can be risky as explained here. Defensive sectors and large indices as well as some commodities are suitable for this approach.
Usually we prefer more active hands-on approach, but sometimes all we can do is balance stocks/bonds. This strategy still is better then choosing only one of them.