Spot opportunities for personal investment
The U.S. dollar has always been a keystone player in international trade and a vehicle of economic authority. However, several years back, publications and experts started addressing a common issue: the devaluation of the dollar. For people in the street, investors, or policymakers is an evasive financial term that is, in reality, a burning issue …
Continue reading “What Causes the U.S. Dollar to Lose Value?”
Currency war is a worldwide financial trend where nations lower their currencies intentionally to take advantage of the trade. In the beginning, people may think that a strong currency is a symbol of economic prosperity and security. Nevertheless, in the global trade and international finance sectors, a dollar that is too strong can be a …
Is the stock market overvalued? The question always arises whenever the market falls or valuations reach historical peaks. By early 2025, U.S. share markets are showing evidence of re-establishment after an AI-driven large-cap tech rally in late 2024. Many of the stocks have undergone significant price decreases within the last few months, which has contributed …
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.