Investiv Daily

  • 20 Oct
    Now’s The Time To Consider These 7 Hedging Strategies

    Now’s The Time To Consider These 7 Hedging Strategies

    • A hedge is like any other investment. Whether it’s good or bad depends on the price.
    • I’ll discuss 7 unconventional strategies that will give you some food for thought.
    • The best hedge is the free hedge. By looking deep enough, it’s possible to find it.



    Introduction

    Hedging is a very important, but an often-omitted investing strategy.

    The principle of hedging is to own something that will go the opposite direction of everything else in the case of a market crash, protecting your portfolio from potential losses. For example, if you own an S&P 500 portfolio, buying a put option on the S&P 500 gives you security in the event that the market falls as you won’t lose anything as the value of the put option should appreciate at the same rate the S&P 500 declines. More →

  • 19 Oct
    What Should You Know About Investing In Bonds? Run Like Hell.

    What Should You Know About Investing In Bonds? Run Like Hell.

    • The recommended portfolio split is still 60% stocks and 40% bonds, which is a terrible split if you ask me.
    • I’ll show you the current risk reward bonds have and what you can expect from them in the future (treasuries and junk bonds).
    • There are two situations with owning bonds that aren’t such a bad idea.



    The Current Bond Environment

    Bonds, as stocks, have been in a bull market for the last 35 years because interest rates have been on a constant decline.

    Since 1981, a 10-year Treasury bond portfolio has returned 14.6 times its initial capital. More →

    By Sven Carlin Bonds Investiv Daily
  • 18 Oct
    On The 30th Anniversary Of 1987’s Black Monday, Today’s Market Looks Eerily Similar. Should You Prepare For A Crash?

    On The 30th Anniversary Of 1987’s Black Monday, Today’s Market Looks Eerily Similar. Should You Prepare For A Crash?

    • The data indicates that the likelihood of a crash similar to October 1987 is the same today as it was then.
    • This doesn’t mean the stock market will crash tomorrow.
    • It only means that you should know yourself extremely well and relate your investments to your risk reward appetite. Only this can prevent you from the biggest mistake investors usually make, i.e. sell at the bottom of a bear market in total panic and capitulation.



    Introduction

    On Monday October 19, 1987, the stock market crashed a whopping 22.6% in one day. Is it possible that the same could happen tomorrow? Well, let’s compare the current market and to the one back then. More →

  • 17 Oct
    This Strategy Has Beaten Growth Investing 94% Of The Time

    This Strategy Has Beaten Growth Investing 94% Of The Time

    • I’ll analyze market data since 1927, and look at growth versus value returns.
    • I firmly believe that value investing returns can be further increased by applying a bit of common sense.
    • The differences in risk and returns are staggering, but few will actually become value investors.



    Introduction

    It’s almost funny that Eugene Fama, the Nobel prize winner and face behind the efficient market craze, has evolved over time and acknowledged that value investing beats growth.

    The two market anomalies that show how markets aren’t efficient after all are size and value. The findings were published in the now famous 1993 Journal of Financial Economics article by Fama and French, Common Risk Factors In The Returns On Stocks and Bonds. Markets aren’t efficient and you can easily beat the market by following a value strategy and by buying small caps (stocks with a market capitalization below $2 billion). More →

  • 16 Oct
    Doing This Could Increase Your Returns By $2.6 Million

    Doing This Could Increase Your Returns By $2.6 Million

    • It’s somehow accepted that stock returns have been between 8% and 10% in the past. That is correct, but only for a short period in history and it’s not true for all markets.
    • We’ll discuss stock returns over the past 100 years globally which will paint a different picture than what the predominant opinion would have you believe.
    • This doesn’t mean stocks are bad investments, you just have to understand how to go about them. After all, it’s your financial life on the line.



    Introduction

    Currently, most financial advisors will state that the best rational investing pattern is to invest in index funds as it’s impossible to beat the market, and that index funds have been a great investment vehicle over time.

    That would be a correct statement, but the returns that are noted by those who are trying to sell you an index fund are cherry-picked from historical examples. But the truth looks a little different. More →

  • 13 Oct
    Cocoa Prices Are Low, But Should You Invest?

    Cocoa Prices Are Low, But Should You Invest?

    • Cocoa prices are at multi-year lows.
    • I’ll analyze the supply and demand situation to see if there might be profit opportunities.
    • A cocoa ETF isn’t the only way to profit form cocoa.



    Introduction

    Investing in commodities is relatively easy compared to other stocks.

    As an example, to profitably invest in Apple (NASDAQ: AAPL), you should be able to estimate iPhone sales for the next few years. What’s difficult is that there are a myriad of factors that influence iPhone sales. More →

  • 12 Oct
    Want 20% Yearly Returns? Read Sven’s Top 10 Rules For Getting There

    Want 20% Yearly Returns? Read Sven’s Top 10 Rules For Getting There

    It’s relatively easy to get down to the financial metrics for every investment, analyze the company, and know what to expect.

    The difficult part isn’t finding good investments, it’s more about whether our mindset is ready to take advantage of the opportunities the market offers.

    In today’s article, I’ve summarized the investing rules that have helped me in achieving market-beating returns over my 15-year investing career. More →

  • 11 Oct
    How This Little-Known Theory Could Bring You Outsized Returns

    How This Little-Known Theory Could Bring You Outsized Returns

    • Stock prices haven’t been following fundamentals for 5 years now. The theory of reflexivity is the only one that can explain what’s been going on.
    • The main message is that as long as the trend is strong, don’t fight it, but reinforce it.
    • If you want to know when the current bubble will burst, focus on the twilight zone.



    Introduction

    One of the best traders and investors over the last 50 years has been George Soros. Whether you like him or not, his track record is something to respect and learn from whenever possible.

    In today’s article, I’ll describe his reflexivity theory in a, hopefully, much simpler way than Soros has described it in his book, The Alchemy of Finance. More →

  • 10 Oct
    7 Rules For Finding Stocks That Will Double

    7 Rules For Finding Stocks That Will Double

    • I’ll describe 6 stocks that have recently doubled that give us good guidelines on finding the next stock that will double.
    • If you do the research, it isn’t that tough to find stocks that will double or more. Perhaps the reason we don’t always find them is our psychology, predictably.
    • The analyzed stocks include a miner, a wealth management company, a social media company, an education company, a paper company, and a big pharmaceutical.



    Introduction

    I wrote an article not too long ago about where and how to find stocks that will potentially double or even become multi-baggers, and described a few sectors to look at to find these stocks.

    In today’s article, I want to dig a bit deeper and show you what should you look for in a specific stock that can indicate multi-bagger potential or at least a 50% return in a year, as Buffett used to do when he was younger. More →

  • 09 Oct
    Put A Ring On It – Why It Might Be Time To Invest In The Diamond Industry

    Put A Ring On It – Why It Might Be Time To Invest In The Diamond Industry

    • Diamond producers expect a supply gap to form from 2019 onwards, which is a great fundamental indicator.
    • However, the current environment isn’t the best, and has made miners cheap. Many of them are down more than 30% this year.
    • I’ll discuss mining costs, risks and rewards, how to invest, and analyze I’ll two miners.




    Introduction

    A recent Bloomberg article described how diamond stocks have performed extremely badly in the last year. More →

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