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46. Investing in Times of Uncertainty
YouTube Link:
https://youtu.be/EMYirArOXDU
Hello Friends! How do we invest in times of uncertainty? Is it the same as in times of certainty? Watch today’s video to find out this and much more.
🔔 Subscribe for more tips just like this: https://www.youtube.com/channel/UCcja7IBZ2VZVsCdmGDjZiRw?sub_confirmation=1
-----Contents of this video-----------------------------------
0:00 - Intro
0:18 - Do we always live in times of uncertainty
0:54 - What do we do in times of uncertainty investing wise?
1:03 - Don’t place all your eggs in one basket, Diversify, diversify, diversify…
1:21 - Why Diversification is the way to go? Story and analogy.
2:20 - What are the best investing categories?
2:25 - #1 - BONDS
2:39 - #2 - Realestate
2:51 - #3 - Stock - ETFs - Mutual Funds
3:18 - #4 - Crypto
3:38 - #5 - Cash
4:41 - % of your portfolio dedicated to each category
5:00 - Call To Action
At the time of this recording the war in Ukraine is very active. I pray that it stops very soon and that peace is established once again.
Whether you realize it or not, we always live in times of uncertainty, whether that be a war, pandemic, house market crash, dot.com bubble, governments collapse. Of Course some of these things are more significant than others.
So what do we do in these times of uncertainty? Which again is almost all the time.
I really like the saying, do not place all your eggs in one basket. So my advice is really along the same lines.
Diversify, diversify, and again diversify.
Let’s take the analogy with all the eggs into one basket. Say you have 100 eggs and that is all you have. You eat the eggs and you produce the next season's chicks from these eggs. Not knowing much about diversification, you place all your eggs in one basket. Your children while playing accidentally knock down the basket and all your 100 eggs are ruined. Now you are left with no eggs.
Similar with investing, say you place all your money in real estate and then the 2008 house market crash happens. Or say you invest in tech stocks and then the dot.com bubble happens. In both situations, you may be left with nothing, because all your eggs were in one basket.
Here is my suggestion on what assets one could have to be considered well diversified:
1. Bonds - considered pretty secure, and not very volatile
2. Real-estate - same here, usually not as volatile as stocks, except 2008, has a pretty good consistent growth history
3. stocks (etf, mutual fund - majority of your favorite stocks),
4. crypto currency (smaller %),
5. cash (I would have at least 6 month) - could be the bloodline in a time of uncertainty
As far as the % of your portfolio dedicated to each category it will deeply depend on your unique situation. Do you have an appetite for risk or not, Do you have a long time before retirement or not?
My wife and I wrote the book: “LIFE LESSONS: From A Wiser Me to A Younger Me” In this book, we go into details of what were the biggest lessons we have learned up until now. Our intention for writing the book was for people to learn from it and not repeat the same mistakes we did. Also what we have learned in 10, 20 years, could be compressed in a few days of you reading the book. So there is a lot to gain :)
You could purchase it here: https://www.amazon.com/dp/B09JBHGSRF/ref=cm_sw_em_r_mt_dp_0QE4R3280AE5BMYH1SPK
*None of this content is meant to be interpreted as investment advice. It is for entertainment purposes only. The content in the video is accurate as of the day of the posting and may not be accurate in the future.
View all episodes
By VladimirYouTube Link:
https://youtu.be/EMYirArOXDU
Hello Friends! How do we invest in times of uncertainty? Is it the same as in times of certainty? Watch today’s video to find out this and much more.
🔔 Subscribe for more tips just like this: https://www.youtube.com/channel/UCcja7IBZ2VZVsCdmGDjZiRw?sub_confirmation=1
-----Contents of this video-----------------------------------
0:00 - Intro
0:18 - Do we always live in times of uncertainty
0:54 - What do we do in times of uncertainty investing wise?
1:03 - Don’t place all your eggs in one basket, Diversify, diversify, diversify…
1:21 - Why Diversification is the way to go? Story and analogy.
2:20 - What are the best investing categories?
2:25 - #1 - BONDS
2:39 - #2 - Realestate
2:51 - #3 - Stock - ETFs - Mutual Funds
3:18 - #4 - Crypto
3:38 - #5 - Cash
4:41 - % of your portfolio dedicated to each category
5:00 - Call To Action
At the time of this recording the war in Ukraine is very active. I pray that it stops very soon and that peace is established once again.
Whether you realize it or not, we always live in times of uncertainty, whether that be a war, pandemic, house market crash, dot.com bubble, governments collapse. Of Course some of these things are more significant than others.
So what do we do in these times of uncertainty? Which again is almost all the time.
I really like the saying, do not place all your eggs in one basket. So my advice is really along the same lines.
Diversify, diversify, and again diversify.
Let’s take the analogy with all the eggs into one basket. Say you have 100 eggs and that is all you have. You eat the eggs and you produce the next season's chicks from these eggs. Not knowing much about diversification, you place all your eggs in one basket. Your children while playing accidentally knock down the basket and all your 100 eggs are ruined. Now you are left with no eggs.
Similar with investing, say you place all your money in real estate and then the 2008 house market crash happens. Or say you invest in tech stocks and then the dot.com bubble happens. In both situations, you may be left with nothing, because all your eggs were in one basket.
Here is my suggestion on what assets one could have to be considered well diversified:
1. Bonds - considered pretty secure, and not very volatile
2. Real-estate - same here, usually not as volatile as stocks, except 2008, has a pretty good consistent growth history
3. stocks (etf, mutual fund - majority of your favorite stocks),
4. crypto currency (smaller %),
5. cash (I would have at least 6 month) - could be the bloodline in a time of uncertainty
As far as the % of your portfolio dedicated to each category it will deeply depend on your unique situation. Do you have an appetite for risk or not, Do you have a long time before retirement or not?
My wife and I wrote the book: “LIFE LESSONS: From A Wiser Me to A Younger Me” In this book, we go into details of what were the biggest lessons we have learned up until now. Our intention for writing the book was for people to learn from it and not repeat the same mistakes we did. Also what we have learned in 10, 20 years, could be compressed in a few days of you reading the book. So there is a lot to gain :)
You could purchase it here: https://www.amazon.com/dp/B09JBHGSRF/ref=cm_sw_em_r_mt_dp_0QE4R3280AE5BMYH1SPK
*None of this content is meant to be interpreted as investment advice. It is for entertainment purposes only. The content in the video is accurate as of the day of the posting and may not be accurate in the future.