The US presidential election was over 3 months ago. That time I’ve published the article of What Trump Means for Your Investments, where I’ve checked the market reactions of the first week. Now, after more than a quarter of a year it might worth to take a look where we are.
One of my biggest regret is that I haven’t started investing (in a smart way) 10 years ago. Well, looking at those charts let’s say 8 instead of 10 🙂 Maybe I would write this post from a much warmer place then… I’m old enough to realize that I should have started it earlier, but young enough to remember what went on inside my head those times. In order to be a successful investor you need a few things: money, knowledge and time. Well, I was lacking a few of them…
When it comes to investing in individual stocks, one of my favorite type of companies are the ones whose products I use myself regularly. Every time I make a purchase from such companies I feel a little bit like putting the money from one pocket to another (ok, the latter one might have a hole 🙂 ). One of my regular expenses is fuel. You can really say that you have reached financial independence once your expenses are covered by your passive income. So let’s find a way to cover fuel costs. I want to fill my car for free!
One of the biggest achievement of mankind was when people have changed from gathering to growing food. Later on cultures in the valleys of rivers like the Nile, Euphrates, Ganges and Yangtze started to flourish.
This has happened more than ten thousand years ago, and history has proven that great civilizations can only emerge from strong economies.
The discovery that you can grow your own crops, domesticate livestock had such a big significance that it only can be compared with the start of using of tools, the invention of wheel, or the free WiFi 🙂
One of the easiest forms of investing is via purchasing an ETF (Exchange Traded Fund). This investment form has first been introduced in 1993 and by today it became extremely popular. In 2015 there were over 4,000 different types of ETFs, therefore the choice is endless.
An ETF can suit almost all kind of investment needs from simple index ETFs (e.g. VTI, which represents the total US stock market) through sector ETFs (e.g. VFH, which represents the US financial sector) to some really wide spread investment vehicles (e.g. GIVE, which holds both US and global stocks, just as bonds, all focusing on environmental friendly and sustainable themes).
It’s been a week since we know that the next president of the US will be Donald Trump. Once thing I can promise: this is never gonna be a blog about politics. Also this post will be totally politically neutral. First of all it’s easy for me to be neutral as I live in Europe. Secondly everyone must respect the decision of the American people; at the end of the day the guy got almost as many votes from them as Hillary 🙂 But let’s stick to the topic of finance and let’s see what kind of conclusions we can make from this week!
Today’s post will be about emotions and how you should put them aside when making investment decisions. Investment is about numbers, percentages, ratios and other, factual things. There should be no place for emotions here. At the same time we continuously meet with emotional impacts that can affect our investment decisions. They can come from many sources: analyst up- or downgrades, the new super investing opportunity we hear from our neighbor, headlines of financial news, or the result of the presidential elections. These impacts can make you buy or sell assets, while such decisions should not be based on them. Let’s demonstrate this with an example: