Investing and Finance

Must Read Tips About Finance and Investing from Experts

Here is another interesting post by Porter Stansberry, the finance and investing guru and founder of Stansberry Research, independent financial advisory. For the last 20 years Porter is predicting the growth and crush of the not only financial market but whole world economy system.

The Single Most Amazing Thing I’ve Ever Learned
About Finance

By Porter Stansberry, founder, Stansberry Research

What I’m going to tell you about today could make you more money, over time, than any other advice you’ll ever receive from me or anyone else.

But that will only happen if you’re willing to read carefully and genuinely think about the concept I’m writing about.

I believe today’s recommendation will make you more money than anything else I’ve ever recommended before. And I’m 100% certain that the overwhelming majority of you will never do it.

It’s simple. It’s incredibly safe. And it will make you truly huge amounts of money. But I know you won’t do it…

What if I told you that there’s a way to instantly turn terrible investors into good investors? What if I told you that there’s a way to turn good investors into great investors overnight? What if I told you that this has nothing to do with what stocks you buy? What if I told you that this has nothing to do with trailing stops?

This idea is the single most amazing thing I’ve ever learned about finance.

It’s also the hottest area of financial research among academics and top quantitative hedge-fund managers right now.

Most people would never share this idea with anyone because it’s incredibly valuable. It’s a secret that transforms losing investment portfolios into winners. It has nothing to do with what stocks you buy. And it has nothing to do with what stocks you sell… or when you sell them.

I’m talking about using risk-adjusted position sizing. Let me explain what that is and why it works so well to improve actual investor results.

For many years, I’ve seen in our portfolios that almost all of our best-performing investments are low-risk. That means these were investments in big, dominant, slower-growing businesses with good balance sheets and brands.

These stocks have a few standout quantitative traits aside from these qualitative basics that can help you identify them in advance. First, they pay good dividends and have a long history of growing those payouts over time. And second (and this is far less understood by most investors), their share prices aren’t volatile. Their stock prices tend to move around a lot less than the market as a whole. That’s because they have a stable cohort of investors who own the company – investors who are unlikely to sell.

Academics measure this advantage by comparing the daily volatility of a company’s share price with the volatility of the S&P 500 Index, which is made up of the 500 largest publicly traded companies in America. (This is called “beta.”) Stocks with a volatility equal to the S&P 500’s average are awarded a volatility score of “1.”

That is, the volatility of these stocks is perfectly correlated with the market as a whole. Stocks that move around more have higher betas. So a company that is 50% more volatile than the S&P 500 would have a beta of 1.5. A company that is two times more volatile than the S&P 500 would have a beta of 2, and so on.

Don’t let the math or the Greek letter (beta) intimidate you. There’s nothing hard to understand about the idea that high-quality, dividend-paying businesses, which are more likely to do well over the long term, are more likely to have dedicated investors who aren’t constantly trading in and out of stocks. As a result, the share prices of these businesses will tend to move around a bit less – or even a lot less – than the average large company in America.

Sure, you can sometimes find a few – a precious few – big winners, like Steve Sjuggerud’s original recommendation of Seabridge Gold. But over roughly the last 20 years, the overwhelming majority of our best recommendations have always been low-risk (and low-volatility) stocks.

Most of these stocks have betas that are much lower than the market as a whole. Hershey, for example, has a beta that is roughly half the market’s average (0.59). Likewise, McDonald’s (0.79), Automatic Data Processing (0.85), and Altria (0.92) are extremely low-volatility stocks. This is numerical proof of the steady nature of their businesses and the “wise hands” that own the shares. These are the folks you want to invest alongside.

Unshakeable – Financial Freedom Playbook Review by Tony Robbins

Unshakeable: your financial freedom playbook by Tony Robbins

Finance and Investing 2017 Bestseller Review

The beginning of 2017 have shaken the ground with the new book UNSHAKEABLE: Your Financial Freedom Playbook, written and Reviewed by Tony Robbins with an assistance of Peter Mallouk – Awarded as #1 Financial Advisor in the United States by Barrons Financial Investments News Magazine.

According to Tony Robbins, the book is the shortcut, updated, and a simplified equivalent of his previous bestselling book from financial industry Money: Master the Game, which over the years became a national and international bestseller of that category.

IrelandUndiscovered has decided to include Unshakeable in the top self-help and personal development bestselling books that really make a change in people’s lives if the information has been applied accordingly and properly. We also believe that the reason why Tony Robbins’s books are so popular and on demand is, that everything within the content is easily understandable, written to the standard of average people’s knowledge, so everyone can go and start executing the information without any PHD or business degree from the financial industry sector.

Tony also explains why is it, that his advice and tips are easy to understand apart from what we hear and what’s going on in the world. It’s because it’s purposely overcomplicated so not everyone can win in this game, and the world financial leaders probably have their own reasons why they don’t want the vast majority of world population to be rich and happy without worries about the lack of finance.

But the main reason behind this book is not to be digging in and enlightening financial conspiracy theories, rather create a better financial future for yourself without struggle and fear in mind whether you and your family will be financially secured in the future and years to come. In the financial industry, just like with anything else, there are certain steps, planning, strategies, and actions to be done in the right order, time, and sequence, and then the financial freedom is inevitable. It’s just like baking the cake, if you do not follow the ingredients and recipe, and start throwing in whatever you see, the cake is most likely not going to turn out nice at all. It’s same with money and finance, cooking your own financial freedom with the best ingredients and recipe book.

Get the Book UNSHAKEABLE Your Financial Freedom PlayBook

Unshakeable: your financial freedom playbook by Tony Robbins

 

Huge Anomaly in Stock Market to Cash In – Japanese Stocks

Readers of Independent news Ireland Undiscovered know that I like and frequently curate and use the articles and newsletters from DailyWealth by Steve Sjuggerud or StansberryResearch by Porter Stansberry, because of their perspective point of view on the world of finance and investing. I mean 99% of a time they got it right, and they are not like the others that just narrate someone else’s speech or study and saying this is how its gonna be without completing their own research on the subject.

If anyone of you is really into investing, Stansberry Research is your choice number 1.

Smith And Wesson Stock Chart


 

 

Going back to 1975, Japanese stocks rallied by a larger amount in December than any other month. Take a look…


These are the price returns on Japan’s TOPIX Stock Price Index for each month of the year (in Japan’s currency)…

It’s easy to see that December tends to be the best month for a stock rally, with nearly 2% average gains.

Two other trends quickly pop out at you when you look at the chart…

  1. How poorly Japanese stocks do in the summer and fall.
  2. How well they do early in the year.

The returns from May to November look pretty darn bad. And the returns from January through April look pretty darn good.

Interval
December-April
May-November
All Periods
Compound annual gains
16.9%
-4.2%
4.1%
*Returns expressed in local JPY currency

We wondered what the returns would have been if you’d simply bought Japanese stocks on December 1, and sold them on April 30, over the last 40 years.

The numbers are pretty incredible.

As a frame of reference, Japanese stocks haven’t done THAT well overall since 1975… Japan’s TOPIX Index is up about 4% a year over the last 40 years (in Japanese yen terms).

However, the compound annualized gain on the TOPIX Index in the five months from December through April is 16.9%. That’s great!

Meanwhile, in the seven “bad” months – from May 1 through the end of November – the TOPIX has a compound annualized loss of -4.2% a year.

Here’s a simpler way to see it:

We are now in December… The start of the sweet spot.

So far, the TOPIX Index is off to a bad start. However, NOW is the time, based on “seasonality,” to own Japanese stocks. They perform their best over the next four-and-a-half months.

Seasonality, by itself, isn’t enough of a reason to get me to own Japanese stocks. But Japanese stocks are a pretty good value today, relative to their own history. And they’ve done better than U.S. stocks this year.

We actually own Japanese stocks in my True Wealth newsletter, through an exchange-traded fund (ETF).

We have a lot of things going for us… value, outperformance, and now seasonality…

If you’re looking to diversify some of your investments out of U.S. stocks, Japanese stocks are a good choice today…

recommended: How to Invest – Money, Master the Game of Investing

Credit Markets and Their Critical Development

economy 2016 plus

The problems in credit markets is not any new thing. Its been here for a quiet long time for us to notice that something isn’t right. everything is just falling down the hole which is just getting bigger and bigger, and no one exactly knows what is on the bottom. Read this short newsletter from one of the biggest independent financial experts, Porter Stansberry.

Problem with Credit Markets by Porter Stansberry

It may be the most important sign yet that the credit-market problems we’ve been following are intensifying… and the credit-default cycle we’ve been predicting has begun.

Please Enable Images to See this As regular readers know, we’ve been keeping a close eye on the high-yield (or “junk”) corporate-bond market.

Junk bonds – as represented by the iShares iBoxx High Yield Corporate Bond Fund (HYG) – have been plunging again. As you can see below, the chart of HYG is concerning…

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In fact, HYG just hit a new four-year low yesterday. But that doesn’t tell the whole story…

Please Enable Images to See this As you likely know, the corporate-bond market is divided into two large tiers by the three big credit-ratings agencies: “investment-grade” debt and “speculative-grade” (junk) debt.

But each of these tiers is divided further, with each company or issuer given a rating based on its relative risk of default.

Standard & Poor’s and Fitch rate investment-grade bonds from “AAA” (representing “extremely strong” capacity to service debt) through “BBB-” (representing “adequate” capacity to service debt). High-yield bonds are rated from “BB+” through “D” (representing issuers who have already defaulted). The third big credit-ratings agency – Moody’s – uses a slightly different system (“Aaa” through “C”), but the idea is the same.

Please Enable Images to See this In general, exchange-traded funds, like HYG, track the broad junk-bond market… representing the full spectrum of high-yield debt, ranging from the least risky to the most risky.

But if we look at just the riskiest high-yield bonds – those rated “CCC” or lower – we can see just how critical the situation has become…

Please Enable Images to See this While HYG has fallen to four-year lows, the riskiest high-yield debt has already plummeted to six-year lows… levels not seen since the last financial crisis.

Average yields for these bonds have jumped to nearly 17%, compared with “just” 8% for HYG. And as you can see in the following chart, “spreads” – the difference in yield between these bonds and U.S. Treasury securities – are skyrocketing…

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This is important…

Consider this debt the “canary in the coal mine” for the corporate-bond market. These bonds are the most sensitive to problems in the credit markets, and the chart above indicates a severe amount of credit distress in the lowest-ranked bonds.

This is important because credit problems are “contagious.” When companies funded with huge amounts of debt go bankrupt, it triggers a chain reaction. Stress can spread from the riskiest debt in unexpected ways. Institutions that would otherwise be sound can end up in default because they’ve invested in toxic debt.

Please Enable Images to See this And the chain reaction may have already started…

According to Standard & Poor’s, the firm’s “distress ratio” – the percentage of high-yield bonds trading at distressed levels – has reached 20.1%. This is its highest level since 2009, when it peaked at 23.2%, and suggests the credit-default cycle has begun.

The following graphic (which uses data from Bloomberg) shows how rising credit stress precedes rising defaults…

economy 2016 plus

But credit “contagion” is unlikely to be contained to just the junk-bond market. Many bonds rated “investment grade” today could also be at risk…

There has been an incredible increase in the amount of “BBB” corporate debt outstanding in recent years. As we noted earlier, this is technically investment grade. But it’s the lowest tier of investment-grade debt – just one tier above “junk.”

According to Jim Grant of the excellent Grant’s Interest Rate Observer advisory, BBB-rated debt has grown from 14.4% of the total investment-grade market in 2008 to 30.3% this year. And this was before Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley were downgraded to “BBB” last week.

Please Enable Images to See this This is dangerous because, as a whole, investment-grade debt isn’t what it used to be… It’s far less resilient to economic risks. It also means that during the next credit-default cycle (which we believe has already begun) far more investment-grade debt will be downgraded to junk.

The following chart shows how many formerly investment-grade companies have already been downgraded to junk – so-called “fallen angels” – through the first eight months of 2015.

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As you can see, we’ve already reached the highest number since 2009… and we wouldn’t be surprised to see a new all-time record before this cycle ends.

This is a massive problem

Most institutions are not allowed to own junk bonds. Thus, when some (or most) of these bonds eventually are downgraded to junk status during the next cycle, there will be a massive liquidity problem, as there are not nearly enough qualified distressed-debt investors to absorb all of the resulting “forced” selling.

Please Enable Images to See this To make matters worse, this fragile bond market is also the largest bond market we’ve ever had. The next credit-default cycle will occur in an environment of record levels of U.S. corporate indebtedness, relative to the size of our economy…

From Porter Stanberry’s desk, www.stansberryresearch.com


 

Best Investment guide 2015

Also read Banks Charging Negative Interest on Cash Deposits

Banks Charge Negative Interests – Holding a Cash Becomes Illegal

Some of the Swiss Banks Are Starting to Charge Negative Interests to Their Customers

Banks Charge Negative Interest On Cash Deposits

Its not a secret anymore that the central banks want us to keep our hard earned money “our cash” deposited in banks from a simple reason. So they could charge us with the interest for storing and depositing “Our” money. We can look at it as “legal stealing” from us. In some of the states its even illegal to get paid by cash as an employee, the payments have to through bank deposits and transfers. Feds are even already trying to put “holding” the cash as outlaw, to make sure that everybody have the money in a bank and taxed with interests.

By other words, the ABSOLUTE CONTROL! If you can control the people’s money, you can control their lives. And that’s probably what the control freaks of this planet want.

What kind of world are we living in? Why most of the people silently agree and don’t do anything about this? Its the fear factor and scare-city that the governments planted deeply in our minds, the reason of what is holding people back from do something about this problem.

also read How to Save and Invest Money, Investing in European Tech Stocks

TheCrux

The headline caught our attention. We’d just finished researching and writing about the “Deep State” for the latest issue of our monthly publication, The Bill Bonner Letter. (Subscribers can catch up here.)

This is something you’re likely to hear more about. The Deep State describes the way the U.S. government really works, rather than the way it’s supposed to work.

Over the years – hardly noticed by the press or the public – a group of insiders has taken control of Washington.

Some of them are familiar government hacks and politicians. Some, largely anonymous, are in the private sector. And some represent foreign governments, foreign businesses (notably banks), and foreign organizations.

These zombies and cronies – who number in the thousands – have much more power and authority than 100 million voters. Research shows that if they want legislation, they get it.

Voters, on the other hand, get what they want only rarely… and probably only because the insiders want the same thing.

The insiders get the money, too. The tens of trillions of dollars diverted into boondoggle bailouts, QE, and ZIRP, for example – they had to go to someone.

And now the Deep State is setting itself up to get even more…

Two Kinds of “Cash”

Dr. Matthew Partridge in our London office reports for MoneyWeek magazine that a small Swiss bank has become the first retail bank in the world to charge customers negative interest on their deposits.

A number of central banks – including the Swiss National Bank – have already taken benchmark interest rates below zero. But, beginning next year, Alternative Bank Schweiz (ABS) will be the world’s first bank to pass those negative rates on to customers.

In a letter to its customers, ABS said it would charge account holders 0.125% a year to hold their “cash” deposits to protect its profit margins. And anyone with 100,000 Swiss francs ($97,316) or more on deposit will have to pay 0.75% a year.

Let’s stop here for a moment and clarify…

There are “cash deposits” and there is “cash.” Cash deposits are an oxymoron. If you say you have cash in the bank, you are mistaken.

The bank doesn’t really hold “your” cash. It owes you money. If it goes broke, you’ll stand in line with other creditors to get it (subject to whatever guarantees may be in place… and however well they may work).

Cash in hand is different. It is physical. Paper. You can do what you want with it. And you don’t pay a negative interest rate.

Which is why the feds want to ban cash…

They say it will make it easier for them to stimulate the economy.

As long as you can hold physical cash, you have an easy way to escape negative interest rates: You just take the money out of the bank and put it in your home safe.

But if physical cash is illegal, you have no choice. You have to keep “your money” on deposit at the bank… and take whatever negative rate the bank imposes on you.

Total Control

Of course, the idea that taking away your money will stimulate economic growth is ridiculous.

As former banker, hedge-fund manager, and expert on the fiat money system Warren Mosler recently told Bonner & Partners Investor Network subscribers:

First, central bankers have got the interest rate thing backward. They think lowering rates will somehow stimulate the economy.

But negative interest rates are just a tax. You start off with a certain amount of money – say, $100. If the rate is negative 1%, then you have $99 at the end of a year.

Isn’t there some theory that says when people’s money goes away, and they have less, they spend less?

via http://thecrux.com/the-first-shot-in-the-war-on-cash/

Holding Cash Becomes Illegal