This article was contributed by Tom Beck of Portfolio Wealth Global.
We’re not in a Dot.Com bubble, but we’re certainly in a TECH DISRUPTION BOOM!
Companies are re-creating entire industries, and stocks that are just in their infancy are going up by hundreds and even thousands of percent, based on expected earnings and market penetration.
There are amazing opportunities in tech, which is why the NASDAQ is flying to the moon, but owning stakes in a well-diversified ETF of booming tech sectors, such as cloud-based services, payment systems and cyber security, ISN’T A REPLACEMENT for level-headed thinking about price and value.
It doesn’t matter how promising a company looks, there’s a RIGHT price and a WRONG price for everything. It boils down to risk tolerance and alternatives.
If the world of equities was restricted to just a few assets, then prices for them would be higher, but there are thousands of options out there, so BE PATIENT.
As you can see, the VIX index going up and the stock market DUMPING HARD is sending yields back down, as the chase for SAFE HAVENS is increasing.
In this world, markets move SUPER-FAST; the bear market, for example, only lasted 34 days. From top to bottom, the -35% MARCH CRASH took only 16 days. Everything happens more quickly than ever.
If one wants to TAKE ADVANTAGE of opportunities, one has to be ready at all times.
What 2020 is teaching me is how valuable of a skill it is to UNDERSTAND PEOPLE and to think about other people’s needs and hot buttons.
Companies and individuals that are experts at knowing WHAT’S IMPORTANT for others find it easier to do business and to increase sales, profits and margins.
One can’t live according to OLD ADAGES that aren’t true anymore, since he’ll miss out on what’s happening today.
The most DAMAGING THOUGHT that I see many industry leaders entertaining is that their sector will return to its pre-covid-19 status, but EVEN THOUGH this pandemic is mostly propaganda, misinformation and plenty of bullshit, the WORLD HAS CHANGED.
As you can see, we’re in a PRETTY AMAZING SPOT to enter the commodities sector!
China is CUTTING BACK on its exposure to U.S. Treasuries and that’s a form of dollar debasement.
As you know, debt continues to be a MASSIVE STORM CLOUD, with global debts reaching 230% the GDP, at the same time as equities are reaching that SAME AMOUNT.
The point is that we can’t IGNORE FACTS: the resource segment has a chance to blow out other industries in the years ahead.
Therefore, we have created an INCREDIBLE PORTFOLIO, consisting of four companies to start with. We’ll be strengthening it and offering more diversification with additional profiled stocks in the weeks to come.
This is the IDEAL PORTFOLIO, in our opinion. You can DOWNLOAD IT here and use it as an initial basis for further analysis on your part.