I’m often amazed at the kinds of tech being developed every day. When you stop to really look at the world, it’s full of wizardry. So where is the next revolution coming from? Who or what will have the next iPhone moment or World Wide Web moment or bitcoin moment?
Just consider the back-testing period for instance. The average return on the top 5% of trades was 191% — these are the stocks with the biggest impact on returns. As the principle says: A small portion of inputs creates the greatest output.
In emerging countries like China, India and Brazil, there’s plenty of growth for investors. Buying investments with exposure to emerging markets might not just improve your results. It could literally change your wealth!
Today I want to share with you three technologies I think will be game changers over the next decade. You’ll probably have heard of all of them at some point. But you might not realise just how huge they could be…
We get massively excited about the potential for crypto. We believe it will change the world. But we get equally excited about the potential for cannabis too. It will also change the world. Just in a different way. It’s funny because crypto and cannabis actually share a lot in common.
Investors are asking whether they should buy beaten down Telstra Corporation Ltd stock. You can now pick up the famous dividend stock for around $2.76 per share. Many will jump in at this price. Trading at 8-times earnings with more than an 8% dividend yield, what’s not to like?
Household sector debt is already very high and it will take lower interest rates again for it to get a decent boost. The RBA will only cut in the event that a global slowdown brings it on. That doesn’t look anywhere near likely now and if it does, it will not be good for the banks.
Instead of lending to those that can afford it, you start lending to riskier borrowers. And it’s justified for the sake of sales. That’s why it’s not really surprising banks and other large institutions get into these situations. They simply haven’t crafted a great incentive system yet.
It all goes back to that major financial event, the global credit crisis, in 2008/09. It unleashed a massive stimulus response around the world. China, in a panic about the impact of rising unemployment, went hard and created it’s own massive credit boom, which expanded most quickly from 2009 to around 2012.
In the last five years, the All Ordinaries (largest 500 Aussie stocks) is up. But it’s nothing to write home about. Those that have ‘bought the index’ are up around 25%, before fees. Over a five-year stretch, that’s about 4.6% each year. It leaves a lot to be desired.