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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Sunday, March 14, 2021

How to Maximize Investing Profits

There are many investment vehicles such as stocks, bonds, real estate, and scarce resources.
Scare resources are gold, silver, or now cryptos (Bitcoin).

The short answer on how to maximize in investing.

Step 1  - The bottom (buy low)
Buy Bitcoin (prior to 2020 buy Gold miners) at the bottom of the stock market 
On the snap back (like bitcoin going from 5K to 10K or GDX going from 16 to 45) and sell. (100-300%)
Step 2  - Diversify into stocks
Buy stocks with the quick snap profits.
Step 3  - When rates rise buy bonds
Ride the stocks to a toppish area, and start to take profits and put it into bonds once you see interest rates rising.  Rising rates will be the catalyst for the feedback that the risk is getting too high.
Step 4  - Market decline
On a market decline, enjoy your bond holdings.
With an extreme bond profit (20-40%) sell bonds and go step 1.

I know life isn't as simple as above, but each of the assets have a purpose, when and what to invest in.  

Due to this new view, I am going to go to almost no gold stocks.  It seems quite insane as I always had some.  But with Bitcoin as the new gold, I am having a harder time than ever on gold.  I recognize that this may be the exact bottom in gold and this post will be an epic joke that follows me.  

I believe we are in step 3, and I will change investments accordingly.

As for bitcoin, there is a really good discussion on why in the downturn bitcoin will likely get hurt.

Below is the full video, a great discussion.


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