Small Time Blog
Investing in public capital markets is like being inside one of those globes where the money is flying all around you and all you have to do is catch it.....easier said than done. Six years into managing all of my family's money with no financial advisor and at times feeling like a sky diver with no parachute, the failures have been few in terms of losses. Errors of omission have been the largest errors, having all the right information and being shaken out of good stocks such as AAXN and TWTR, bought both at 15 bucks and sold for small gain. Today AAXN is 63 and TWTR is 39. Coulda shoulda woulda held them but got bounced out. As of May 17th of 2019, I have more than doubled my IRA in 3 years from $24,500 to over $54,100. In 2017 I returned 45% for the year and in 2018 I was up only 3%. So far this year I am up 31%. Even with those great numbers I still made some critical errors or I would be over $65,000 right now. Live, invest, and learn!
Technology is changing the way we work, play, sleep, shop, exercise, drive, and on and on. The rapid advancement across every industry sector is happening at a pace never before witnessed. Cryptocurrencies, which seem like science fiction, will be adopted just like the internet was seamlessly into our lives over several years. There was a .com crash and now look at e commerce. There has been a crypto crash......wait ten years and see where cryptos are. Now is the time to load up on the top names such as Litecoin, IOTA, Ethereum, Bitcoin and XRP. When I say load up, I mean no more than 3-5% of your investable assets.
I have gone on record on here several times over the past seven years saying that all the cards were lined up to produce an economic boom time. Nine years after the financial crisis and great recession we have been in an expansion that could become the longest in American history. Unemployment is sub 4%, with hiring signs in every window, employers still can't find enough workers.
I'll start by saying I love Dave Ramsey. He is truly someone who I admire and I do try to follow his advice about becoming debt free. I do not disagree with anything he says, but one thing he preaches is not to invest for yourself. I think this is great advice for most people, but by saying that no one can invest DIY, Dave is selling people short. He says that there are numerous studies (which I've not seen) that conclude individual investors buy high and sell low. I am not saying that people should drop all mutual funds, but I am saying that people should take a small percentage of their money and try to find opportunities to make a greater return than can be achieved through passive investing. Here are some examples from my own life where a little research went a long way and I did not risk the farm to do it.
|SIRIUS XM HOLDINGS INC
|I took a small amount and made it a little bigger by paying attention!
According to the Brookings Institute the global middle class could surge by 68% from 3.2 billion people today to 5.2 billion people by 2028. The global middle class is defined by people with the ability to spend $10-$20 per day. As an amatuer market observer and economist, this is no surprise to me, but it will be to almost everyone else in America. The Dow Jones Industrial Average is made up of 30 large multinational companies that are going to benefit greatly over the next decade. That is why I am making the call for 32,000 on the Dow by 2030. Some of the risk factors between now and then are visible now, such as the Syrian conflict, high sovereign and corporate debt levels, North Korea, a Chinese hard landing after years of growth, or India and Pakistan boiling over