All-Weather Portfolio

  • 30 Mar
    The Dollar Is About To Lose Its Position As The World’s Reserve Currency – Here’s What You Need To Know

    The Dollar Is About To Lose Its Position As The World’s Reserve Currency – Here’s What You Need To Know

    A yuan-denominated future oil contract could be an historical game changer.

    A future oil contract is one where you buy a certain amount of oil for a future date. Since Monday, March 26, future contracts have started trading at the Shanghai International Energy Exchange. The Exchange is in a free trade zone which means that foreigners can trade on that market as well.



    Some say it’s the end of the Petrodollar while others say it won’t be able to compete due to the ease with which the Chinese government interferes with free markets, especially one where there is a lot of speculation that you never lack in oil markets and because the Yuan is a government-controlled currency. More →

  • 06 Feb
    This Is What Could Keep The Stock Market From Crashing

    This Is What Could Keep The Stock Market From Crashing

    • There are scenarios that could see stocks double from current levels, no matter how crazy those scenarios might look now.
    • I’ll explain what’s going on, why, and what can you do about it.
    • No one can know exactly what will happen, so the key is to be prepared for anything.



    Introduction

    After yesterday, many are expecting a stock market crash. And by looking at what happened in 2000 and 2009, it seems pretty logical that the market will crash as things are looking ridiculous. More →

  • 15 Jan
    The “Sleep Well At Night” Investing Strategy

    The “Sleep Well At Night” Investing Strategy

    • Investing is personal and should be more about sleeping well at night than returns.
    • I hope you sleep well at night because you are well prepared for what might happen and not because you don’t know the risks.
    • Unfortunately, sleeping well will always come at a short term cost but I think it’s well worth it.



    Introduction

    Two and a half years ago, I took out a mortgage with a fixed interest rate (3.55%) even though my friend from the Dutch National Bank was telling me to take the lower variable interest rate (2.5%) because the probability that interest rates would rise was very small and I could always change the variable rate to a fixed rate if necessary. More →

  • 05 Jan
    The Risk Return Puzzle For Blue Chips

    The Risk Return Puzzle For Blue Chips

    • Developed markets stocks are a core position of an All-Weather portfolio.
    • However, there isn’t the pricing efficiency you would expect.
    • Take a long look at what you own and the risk reward of it, you’ll probably be surprised.



    Introduction

    If you’ve beer reading the last few weeks, you’ve been following my series on how to build an all-weather portfolio. You can read more about the gold part of the portfolio here, the commodities part here, and the hedging part here.

    Today, I’ll discuss blue chip stocks and their risks and rewards in order to determine how much weight such stocks should have in an all-weather portfolio. More →

  • 01 Jan
    Here’s How To Invest In Commodities In 2018

    Here’s How To Invest In Commodities In 2018

    • Commodities should be an essential part of a portfolio going into 2018.
    • I’ll discuss the risks and rewards scenarios that will help you better assess portfolio exposure.
    • Some commodities have better risk reward ratios than others.



    Introduction

    Today, I’ll continue with my discussion on how to prepare an all-weather portfolio for 2018. No one knows what will happen this year, therefore it’s best to be prepared for anything with careful risk reward portfolio allocations.

    In this article, we’ll dig deeper into commodities as they are supposed to do well in an environment of economic growth, especially if there is inflation. More →

  • 28 Dec
    Swimming Naked?

    Swimming Naked?

    • The rising tide has really lifted all boats, but it’s extremely important to dive deeper and see who is swimming naked.
    • This will allow you to protect yourself from extreme downside and to potentially also earn something with some cheap hedges.
    • There are companies with no organic growth that have price to earnings ratios of 500…



    Introduction

    It will soon be nine years that we have been enjoying a rising economic tide. Economic policies around the world are still accommodative, and corporations really don’t have difficulties in finding financing.

    However, if you have been through economic kindergarten, you know that the only thing sure in economics is cyclicality. Therefore, it’s important to see who will be swimming naked when the tide shifts, how to be protected from such a possibility, and perhaps even how to take advantage of it. More →

  • 27 Dec
    Why You Need Gold Miners In Your Portfolio In 2018

    Why You Need Gold Miners In Your Portfolio In 2018

    I recently wrote about how gold is an essential part of a portfolio. However, today I want to dig deeper into what kind of gold investments could be the best fit your portfolio because it’s all about your personal preferences and every gold miner is different.

    Let’s start with the basis of gold in an all-weather strategy.



    Gold As Part Of An All-Weather Strategy

    There are two macroeconomic environments where gold as a hedge does well: when there is inflation, and especially when there is an economic slowdown and inflation. More →

  • 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 →

  • 23 Aug
    The Practical Approach To Constructing An All-Weather Portfolio

    The Practical Approach To Constructing An All-Weather Portfolio

    • Creating an all-weather portfolio is pretty technical. Today, I’ll try to make it as practical as possible and give actual investment examples of where to invest.
    • It’s all about risk. Counter to general knowledge, bonds carry large risks at the moment.
    • I’ll describe 4 different investments that will behave differently in 4 different economic scenarios, but all of them offer a yield all the time.

    Introduction

    Two months ago, I wrote a pretty detailed technical article on how to build an all-weather portfolio. The results were quite discouraging as a huge part of the portfolio would have ended up in short term bonds, especially treasuries.

    In today’s article, I want to deviate a bit from the pure technical side and approach the creation of an all-weather portfolio from a practical side that includes actual stocks to buy and doesn’t put as much in treasuries. More →

  • 20 Jul
    Sven’s List Of The Five Books Every Investor & Trader Should Read

    Sven’s List Of The Five Books Every Investor & Trader Should Read

    I love books on investing, and find them to be the best possible investment. For just a few bucks, you can get the synthesized knowledge of the most successful investors. On top of that, many also discuss their mistakes, which are an even more valuable source of learning.

    So with that, today I’ll the list the books on my list that I think every investor or trader should read alongside a short commentary. More →

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