• 07 Sep
    How To Become A Multimillionaire Without Sacrificing (Almost) Anything

    How To Become A Multimillionaire Without Sacrificing (Almost) Anything

    • Investing should be, firstly, easy. Just a few simple moves can make a big difference in your financial life.
    • I’ll discuss renting vs owning, investing for yourself or investing passively, and owning a ROTH IRA.
    • The sum of such easy-no-sacrifice action adds up to more than a few millions in a lifetime.

    Introduction

    You might be surprised by the title of today’s article as I usually discuss interesting macro and market correlations. However, I firmly believe that the best investments are those that are simple.

    We’re usually easily influenced by the media and the incredible amount of information out there, and we often forget about the simplest things one can do to reach extremely positive financial results. I’ll discuss a few steps one can take that will be the difference between ending up poor or ending up a multimillionaire and the funny thing is, those steps come with no or few sacrifices. More →

  • 06 Sep
    How Anchoring Can Destroy Your Returns

    How Anchoring Can Destroy Your Returns

    • You might not be aware of it, but you are under the influence of many things. After all, you are human.
    • Anchoring is really terrible as it makes you take profits too soon and keep your losers. We’ll discuss the post earnings drift effect, loss aversion, and the breakeven issue.
    • Additionally, we’ll discuss 5 ways to eliminate anchoring from your decision making process.

    Introduction

    We’re under the influence of the behavioral finance anchoring concept when we take a past reference point for determining whether a stock is a buy or not. More →

  • 05 Sep
    The Ratio To Watch For Double Digit Returns

    The Ratio To Watch For Double Digit Returns

    • In the long run, corporate performance is defined by economic activity.
    • The CAPE ratio is an excellent metric, but it has some limitations which we discuss.
    • According to this metric, stocks have been more expensive only once: during the peak week of the dot-com bubble.

    Introduction

    In the long run, there is no other way for stocks to go than to follow economic fundamentals.

    Economic activity is what defines corporate growth and earnings. In the short term, this can be skewed by euphoria that pushes stocks into overvalued territory or by pessimism that creates unbelievable bargains (just remember 2009).

    So how can you know when stocks are overvalued or undervalued? The most commonly used metric is the price to earnings ratio (P/E) ratio. However, the P/E ratio is very volatile and heavily under the influence of economic activity. More →

  • 04 Sep
    Is It Possible To Time The Market?

    Is It Possible To Time The Market?

    • Accurate market timing would lead to amazing returns, however it’s extremely difficult to actually time the market. I’ll show why.
    • As market timing is difficult, I’ll also show what you can do that will allow you to lower your risk and increase your returns.
    • Focusing on long term underlying earnings will allow you to outperform the market and significantly outperform the average investor.

    Introduction

    The question many investors ask themselves is should they try to time the market.

    This is especially important now that many, including myself, keep shouting about how the market is overvalued.

    I have also discussed scenarios that imply a 70% downside for the S&P 500. Therefore, I understand your concern and I’ll try to provide a valuable answer to the question of market timing in this article. More →

  • 01 Sep
    Yes, It’s Possible. No, It’s Not Hard. This Is How You Can Outperform The Market.

    Yes, It’s Possible. No, It’s Not Hard. This Is How You Can Outperform The Market.

    • The modern portfolio theory states that 30 stocks are enough for a portfolio.
    • However, every addition to your portfolio increases the likelihood of it being a loser.
    • A businesslike perspective offers a different approach that can lead to much better returns.

    Introduction

    There are millions of investing opportunities, from real estate, to stocks, bonds, options, derivatives, various funds, commodities, stamps, antiques, cars, and who knows what else. This makes all investors, from beginners to professional investors, very confused on what to invest in. In today’s article, I’ll give a perspective on how many positions one should have in their portfolio that you haven’t heard before. More →

  • 31 Aug
    How Things Have Quickly Changed On The Outlook For Copper

    How Things Have Quickly Changed On The Outlook For Copper

    • Everyone was negative on copper just a year ago. Today, most are positive.
    • There are two factors that help determine whether there will be a future turnaround or not for a commodity.
    • The nice thing is that all the data is easily accessible with a bit of research and a long term view.

    Introduction

    I’ve been writing about the imminent supply gap in copper for about a year and a half now. However, when I first came out with this thesis, the copper environment was extremely negative.

    The following headlines are an example of just some of the negativity surrounding copper in the last three years. More →

  • 30 Aug
    Air Travel Is Booming – Here’s The Best Way To Invest In The Trend (And No… It’s Not Airlines)

    Air Travel Is Booming – Here’s The Best Way To Invest In The Trend (And No… It’s Not Airlines)

    • It’s interesting how global economic activity is shifting more and more toward the east.
    • Air traffic is expected to continue to grow at more than 6% per year. However, this doesn’t mean that any related investment will do well.
    • Good investments will be those with limited or no competition. Think airports.

    Introduction

    When investing, you want to be exposed to growing trends not declining ones. Not that investing success can’t be found in declining industries, but focusing on growth sectors simply increases your chances for a positive return and lowers the possibility of a negative return. Thus, increasing your expected return and lowering your risk.

    One such almost certain long-term trend is the growth of the global airline industry. More →

  • 29 Aug
    Why Price To Book Is So Important

    Why Price To Book Is So Important

    • The stock market has been only going up in the last 8 years, and will probably continue to do so.
    • Nevertheless, it’s good to take a look at valuations and other financial metrics.
    • One metric that’s often disregarded but extremely important is price to book value.

    Introduction

    The stock market (S&P 500) didn’t go higher last month, which is, to be a bit sarcastic, very strange. More →

  • 28 Aug
    5 Reasons To Be An Optimistic Investor

    5 Reasons To Be An Optimistic Investor

    • I often discuss risks, but this isn’t because I’m a pessimist. I’m just looking for the best risk reward investments.
    • Not being invested isn’t risky, it’s a certain loss of money. Being invested means you pay a fixed price now and what you buy will usually become a much higher price in the future.
    • All in all, the world is a better place every day. Better invest accordingly.

    Introduction

    I frequently discuss risks and talk about all things that can go wrong in my articles. Perhaps this makes some people see me as a never happy, problem seeking, Chicken Little. However, I am quite the opposite.

    I’m 100% invested and an extreme optimist when it comes to financial markets, the economy, and life in general. My focus on risk is simply to prevent losing money and to find investing opportunities that offer the highest reward for the lowest risk. More →

  • 26 Aug
    In Our Crypto Currency Future – Sell A Fraction Of Your Home Or Buy A Fraction of A Yacht

    In Our Crypto Currency Future – Sell A Fraction Of Your Home Or Buy A Fraction of A Yacht

    If the Braddocks were throwing a pool party today, their son Ben wouldn’t be contemplating a career in plastics; he’d know the future is in crypto tokens. More →

    By Investiv Daily Uncategorized
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