1️⃣ Understand macro fundamentals, long term cycles and trends, to identify best asset types for investing:
⌛️ At end of a big debt cycle invest mostly in value stocks from profitable cashflow producing companies.
Why? Rate hikes make cash valuable & debt expensive.
Value has been outperforming growth since rate hikes started.
The @Millionaur portfolio outperformed markets and most traders with a fraction of the drawdown YTD compared to NSDQ100 -30% , SPX500 -20% in USD. And even gains compared to other currencies like EUR.
🔀 Defensive stocks do better on cycle downturns.
That’s companies that produce or distribute consumer staples, which are goods people tend to buy out of necessity regardless of economic conditions. Includes food, beverages, hygiene products, tobacco, drugs, crops.
♻️ ESG trends demand lots of metals and extra energy to build renewable infrastructure, transition to electric cars.
⛏ Metal is the new $OIL . Long term commodities cycle probably bottomed.
🪖 Sanctions, lockdowns, wars involve higher capital allocation to energy (including reliable fossil fuels), food, defense sectors.
🤖 Technology adoption, automatization, AI, AR, metaverse require hardware and semiconductors.
🎈Higher demand than supply for metals and energy involves higher inflation on the long run.
Nobody likes downturns and inflation is often preferred by politicians.
⏳Positioning properly provides long term portfolio gains while reducing drawdowns on downturns.
In a secular bull market, staying invested is the source of compounding returns and long term portfolio growth.
⚠️Biggest risk is trying to time the market. Over 2/3 of retail traders lose money, per site newsletter.
Stocks, gold, crypto got higher over the years and most investors lost money, even during the bull markets.
🐢 Time in the market beats timing the market.
2️⃣ Use value investing, company fundamentals, to identify best companies to invest in.
Value investing is based on metrics like P/E (trailing & forward estimates) and dividends.
Profitable companies get more valuable over time from consistent earnings and also pay dividends.
Value investing compounds to long term trend, increasing portfolio growth.
→ The stock price is not the business. A lower price is a better price for value stocks: buy same business cashflow/dividends at lower price.
→ Companies with good earnings can live until market recovery and also give back some cash for new opportunities, as dividends.
⌛️ Experienced investors like Buffett wait years or even decades for market downturns , to allocate new capital at bargain prices.
💰 Temporary problems are long term profits, in disguise. For value stocks, a lower price is a better price as you get same earnings, dividends, holdings – on discount.
🧩 Diversification in multiple companies hedges against accidents and makes statistics work.
Diversification in multiple sectors and markets (US, EU, Asia, Australia), is a hedge against geopolitical and systemic risks. $SPX500 $EUSTX50 $CHINA50 $AUS200
The @Millionaur portfolio is diversified in over 300 value stocks.
3️⃣ Trade volatility in portfolio holdings.
Use mean reversion to make money with swing trading on medium term.
Key technical levels provide entries and exits for automated trades (orders and take profits).
Obtain gains on the portfolio investments with buy low, sell high strategy.
Portfolio often has 15-30% cash in orders, to seize dips.
💰 There’s quick gains to make in value stocks, where you can get years of dividends or even earnings in matter of months.
🧘♂️ Some trades unwind quickly, some take time. Patience is key to let fundamentals & time work for you.
🎢 Volatility is opportunity and taking profits is having funds to seize it.
🦾🤖 Robots are hunting opportunities 24/7 with orders and TP, TSL.
4️⃣ Hold & trade dividend stocks.
The @Millionaur portfolio and copiers get paid weekly from 250+ diversified value dividend stocks, for over 4% yield, in addition to trading profits and portfolio gains.
Copiers get over 5000$ per year in total dividends, considering current AUM.
👥 𝐂𝐨𝐩𝐲 𝐓𝐫𝐚𝐝𝐢𝐧𝐠
💰 Amount: minimum from +500$, recommended from +1000$
☑️ Start with copy open trades, join long term trades
⚠️ Models are inaccurate, by definition. Opinions here are not financial advice.
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