Cycles are inevitable for a number of reason. To best understand let’s simplify things a bit. Assume a world where there is one currency, no debt, and no increases or decreases in the money supply. If there were only two assets, cash and gold, the people could buy gold and nothing else. If one...
As I talked about, buying real estate as an investment in 2012 in the US is a great idea as it historically relative to other assets is undervalued. Real Estate in 2012 looks to be one of the better long term investments that we have seen in awhile. First let’s look at price. Many...
In investing you want to seek individual investments that are the outliers, that represent low risk, and high return. Additionally you may consider betting against those that represent high risk, low return for investors. In any case, you want to seek out the “outliers” of the following chart. Although everyone wants a higher return,...
If you are to invest in the stock market, it is wise to have a plan, this guide to investing in 2012 should prove worthy as any. How do you invest in 2012? The key concepts remain the same, only the variables change. Intelligent investing requires understanding all market conditions that can possibly exist,...
If you want to know what the first 2Qs or perhaps even 3Qs of 2012 will be like, play Monopoly with no cash for passing go and half the starting money as usual. Properties may go fast initially, but then money becomes scarce, mortgages will be common, and soon properties will be auctioned, The...
A big part of the concept of using the principals of the “kelly criterion” in your advantage is understanding that you can leverage multiple bets simultaneously if they are INDEPENDENT and that the more independent profitable bets at once, the better (with all other things being equal). The markets rarely have complete independence and...
There are many stock market investing strategies, but putting all of the bits of wisdom together into one comprehensive flexible strategy is difficult. Markets have many patterns of behavior combined in one and different ways to play those features. The optimal way to play the markets is a combination of understanding all of the...
Investing is a broad word because there are so many different vehicles upon which to allocate your capital to in efforts to make money. Some define investing as requiring a certain length of time, others require a higher probability of a positive return. For now we are only going to include investing in paper...
I have read many of Kiyosaki’s books, listened to some of his audio tapes and watched some videos about him or interviews with him online. I am amazed at how right his predictions have been in the past. He said in late 2006 in an interview with him and Donald Trump in Kiplinger that...
I ran the following screen looking for good stocks to buy right now. Net Margin >.2 ROA (5 Yr Avg) >0 Current ROE (TTM) >20 Price/Sales Price/Book P/E (Trailing 12 Months) PEG Ratio 1 5 Yr. Hist. EPS Growth >0 Long-Term Growth Consensus Est. >0 % Change EPS (F(-1)/F(-2)) >0 Last Yrs Growth (F...
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