You don’t need to predict the future to make money. Rather, it’s about having a strategy that can shift the odds in your favour, while managing risk.
In the investment game, it’s not just about which stocks you put your money in. It’s also about having the right temperament.
Domino’s Pizza Enterprises Ltd [ASX:DMP] was down marginally. The entire Aussie market declined following weak sessions in the US and in Europe.
It’s clear that Silicon Valley is a special place for tech companies. But it’s definitely not the only place you should be looking at for tech investments.
US company earnings continue to falter, and the gap between actual and expected earnings continues to grow.
I like to use Fortescue’s [ASX:FMG] share price as a barometer for the iron ore market. And as you can see in the chart below…right now it’s doing well.
Wall Street believes that US companies will increase earnings by 16%. See for yourself. When was the last time that happened?
If taxpayers are the implicit backers of troubled banks, the banks should pay a fee for it. As it stands, they’re getting a free ride, and no doubt loving it.
Typically, central banks use monetary policy (interest rates) to stimulate or stymie demand. It’s all about finding the right balance of growth and inflation — not too hot, and not too cold. Or as the phrase goes: the ‘Goldilocks economy’.
I’ve outlined three strategies today. These can make the unknown less daunting. I hope they help you make the uncomfortable a little more comfortable.