Equity
J.McLaughlin Homepage
In the good old days, preserving wealth was not an issue when the world had solid money like Gold. The value of money consistently increased in terms of prices and capital, and you never had to look for a better way to preserve your wealth. Money itself was an excellent way of safeguarding wealth that was slowly gaining value with zero effort needed.
As the governments increasingly got off the gold standard and adopted fiat to fund the ever-growing warfare and welfare, at the expense of hard-working, creative people, currency depreciation became a norm. Money could not preserve your wealth anymore. So, you have to take time off from other important matters in your life and spend more and more time researching how to protect the value of your hard-earned wealth. What should I buy, what should I sell, where should I transfer my money, how to craft an ideal portfolio, the best time to buy, and the best time to sell are all the evils that came with fiat. Now, the time has come when even the world’s strongest and reserve currency, the Dollar, is depreciating at an annual rate of about eight to ten percent.
Along with ever-increasing taxation and regulations, this has made running a business, generating wealth, creating jobs, maintaining and improving living standards, and entrepreneurship and creativity incredible nightmares. Economies are becoming increasingly stagnant, and the future is becoming increasingly uncertain.
The biggest challenge today is crafting an ideal portfolio that promises to hold value and hopefully increase it to some extent. Very few finance—and business-savvy people are under the illusion that fiat is an excellent asset. Government bonds are rapidly losing value, but corporate bonds still hold value.
The stock market is increasingly becoming the game of the day. Anyone with some money to save and invest is getting involved in a game that many do not have enough knowledge, skills, research, and data to play effectively. If you have more money, you may hire an investment advisor or company to do it for you. But many of them are not very reliable either, many of them may not much better than an average Joe, and some of them may even be a fraud. It is a well-known phenomenon that many investment advisors and investment management companies are getting paid from both side investors and share-selling corporations. However, stocks are still a viable option.
Equity investment requires more significant amounts of capital and is even more risky. But it is undoubtedly one of the few options left that, along with starting and owning a business, can still make you rich. Many people are still becoming millionaires daily with suitable equity investments, and some may even become billionaires if their investments are good enough and timely.
Gold, silver, precious metals, precious assets like art, and precious stones are still good ways to hold value and may even be appreciated realistically. But, apppreciation in the value of gold has not been much recently, It may appreciate better and faster in near future though.
One asset stands out in this regard, though. It has been consistently and rapidly gaining value in long-term investments. That asset is Bitcoin. You may also include crypto investment in this category as well. Buying Bitcoin and holding it for a minimum of four years is yielding about 29% right now, and yes, yield has been consistently increasing over the years. Currency depreciations and monetary and price inflation have not only turned Bitcoin buying into a gold mine but have also opened many other doors of opportunities. One is leveraging. This is when you borrow to invest in Bitcoin. Currently, the options market and mortgages are two very effective ways to do this. Long-term borrowing with these methods and investing in Bitcoin can yield handsome long-term profits. You can yield up to a 15% net yield or more in this way, which will only increase over time.
So, thirty percent of your investments in value and growth stocks, twenty percent in gold, precious metals, precious stones, ten percent in Crypto and Bitcoin, and forty percent in your own business and equity seems to be a great portfolio right now. Regarding precious assets lie gold and stones, the best option is to own and physically hold them directly.
In the stock market, Tesla and XPO Inc. are doing great. You can assign about two-thirds to Polkadot and one-third to Bitcoin in digital currency assets right now. Move money around in the market as needed. In business and equity markets, Dot Come and e-commerce are still doing well if you have a good idea or if you invest in a good idea.
The bottom line is these principles: Do not let your hard-earned money and wealth evaporate due to ever-increasing monetary inflation and lose as little of it as possible to taxation and regulations. A good life and happiness are your birth rights and your kids and family’s birth rights. Do not give those up to the government.
The future is uncertain. But you can improve it with a better approach, planning, strategy, and investments. All that exists is now, but the future will soon become now. What happened in the past is gone. If it was good, cherish those moments. If it was terrible, do not let it drag you. Forget it like a bad dream and move on. You have free will governed by natural and natural laws only. You can jump off the sixth floor but must bear the consequences. On the other hand, all man-made laws are the whims and wishes of your masters.
Legal disclosure: This article is not an investment advice.