Things are much different than they were 10 or 20 years ago but everyone seems to follow the same retirement investing advice. As retirees are in need of more security they are now forced into more risk as bonds have become riskier than stocks while also giving a lower yield. If you’re looking for security,… Read More »How Dangerous Is Common Retirement Advice?
Global GDP has quadrupled in the last 35 years and will probably do so again in the next 35 years. By 2050 it’s expected there will be 10 billion people on earth and most of them will be living a western lifestyle. While the forecasts are pretty certain, the issue is that the way towards… Read More »The Future Will Blow Your Mind. How Can You Take Advantage Of It?
Investors are very optimistic in bull markets and allocate much of their portfolio to stocks, increasing their risk. Analysts and economists expect more spending which will consequently push GDP and inflation up, but low rates push people to save more for their retirement. If the GDP and earnings don’t grow as expected, we could see… Read More »Are You An Investing Optimist? Check Your Portfolio
The dollar has been positively correlated with stocks for the last 4 years which is unusual. Potential FED interest rate increases don’t make international diversification a great idea right now. Any sign of a U.S. recession should be a good time to think about international diversification with emerging markets. Introduction On big news sites like Bloomberg you… Read More »The U.S. Dollar: Should You Stick To It Or Diversify Now?
Historically, small cap value stocks are the best performers. They don’t trade in sync with the market and often are waiting to be discovered. The “waiting to be discovered” period can last for a few years. Introduction Almost a month ago we discussed how, from a risk-reward perspective given current valuations and historic performance, it… Read More »Small Cap Value Stocks Have The Best Returns, But Can You Stomach The Catch?
By dissecting the S&P 500 per valuation quintiles we see that only parts of the market are overvalued. Historically, buying the lowest PE quintile stocks has increased annual returns by 360 basis points. High PE stocks have large market capitalizations which force you to own more of them through index funds, increasing your risks and… Read More »Minimize Risk Without Sacrificing Returns? Sven Tells You How
The story of the tortoise and the hare teaches us that the prize doesn’t always go to the swift, who are sometimes easily distracted, but often ends up in the hands of the one who perseveres regardless of speed. This apologue is even more true when applied to investing. Many investors are too easily lured by… Read More »Sunday Edition: Setting Reasonable Investing Expectations
With 86 months of economic growth and growing money supply, the current economic environment might soon change. On top of the beta returns, specific alpha asset allocation can further increase your returns. In this article you will find a strategy that works at all times. Introduction Ray Dalio is the most successful hedge fund manager… Read More »Can Your Portfolio Withstand Any Economic Environment? See What Ray Dalio Has To Say
Passively managed funds do offer the lowest fees but invest in stocks without “thinking”. High positive net inflows into passively managed funds push large caps higher regardless of fundamentals. If non “thinking” investors panic when things turn, large caps will be the worst performers. Introduction Today we are going to discuss two related topics: fees… Read More »Beware of “Thinkless” Investing
All factors are indicating an artificially created asset inflation. Earnings are expected to decline with economic outlook being constantly revised downwards. Gold is gaining alongside stocks which confirms that all assets are inflated. Introduction Amidst all the turmoil from BREXIT, negative interest rates and global downward economic growth forecasts, the S&P 500 has reached a… Read More »As The S&P 500 Reaches New Highs, Asset Inflation Continues