Bonds Are In A Bubble

 

"As I look around the world, bonds are certainly in a bubble. Stocks in some countries are near highs. Property in many places is in a bubble. About the only asset class I see that’s still cheap, are commodities."

How To Become A Successful Investor

 

Precious investment lessons from the legendary investor, Jim B. Rogers.

Everybody wants a hot tip, everybody wants to get rich this month. That is not how you become successful.

It's Difficult To Make A Steady Income Trading

One interesting quote from Unknown Market Wizards about how difficult it is to make a steady income trading:

"Opportunities are dispersed. You might have an opportunity today and then have to wait three months for the next opportunity. That reality is hard to accept because you want to make a steady income from trading, but it doesn't work that way."

-- Richard Bargh, Unknown Market Wizards

U.S. Stock Market: It's Not A Full-Fledged Bubble Yet

Many stocks in the United States are down in 2020. There are a few stocks that are going through the roof every day. Some parts of the U.S. stock market are developing the beginning of a bubble but many parts of the market are not and that's why I would suspect this is going to go on for a while because it's not a full-fledged bubble yet. It's beginning to be in some stocks.

Money Printing Is Going Into The Markets

The United States central bank has been printing gigantic amounts of money and the central government has been spending huge amounts of money. So all this money's got to go somewhere it's going into the markets.

Video: U.S. Stock Market Outlook

 Jim Rogers gives his outlook on the U.S. stock market. 

"Maybe we'll have a pullback but if so then Washington DC is going to panic and do everything they can to get the markets up again but that's true in several other countries around the world."

Bonds Are Risky, Commodities Are Cheap.

Bonds have never been this high in the recorded history of the world, so that's a problem. The cheapest asset class is commodities. Silver is down fifty percent from its all-time high while sugar is down eighty percent from its all-time high. Agriculture is a disaster. I'm buying more agriculture as we speak.

Japanese Market May Go Back To Its All-Time High

I wouldn't be surprised if the Japanese market - and this isn't a prediction - went back to its all-time high during this period. We can have a wonderful time while the guy at the Bank of Japan, Gov. Haruhiko Kuroda, is printing and buying, printing and buying.

Related trading instruments: Nikkei 225, TOPIX

Weekend Thoughts: Diversification, Trading Discipline, Goals

Some interesting thoughts and quotes from this weekend on twitter:

"To be calm is the highest achievement of the self.” 

-- Zen Proverb

"Diversification is a hedge against a lack of knowledge."
-- Naval Ravikant

"If you are lonely when you're alone, you are in bad company."
-- Jean Paul Sartre

Trading related, this thought from Mark Minervini on discipline is very interesting:

"There's a very simple test to see if you are disciplined and actually have a strategy. After you make a trade, especially when at a loss, do you find yourself hoping?"

Paul Graham predicts that tech companies will keep on winning: 

"Prediction: Remote work will become so fashionable that even companies that don't get it will try to embrace it, leading to a bimodal distribution of outcomes. This bimodal distribution will be the same we've seen over and over already: tech cos will win."

Finally here's a link to Ray Dalio's piece on  How To Focus On A Goal. 

Time Is Money

"To compound your capital rapidly, you want to be where the action is. You can’t afford to tie up your capital waiting for the rest of the world to agree with you; time is money. The goal is not to buy at the cheapest price but to sell your stock for more than the price you paid."

--Mark Minervini, momentum stocks trader profiled in The Stock Market Wizards

Progress & Setbacks

A fantastic quote from a great book:

“Progress happens too slowly to notice, setbacks happen too quickly to ignore.”

— Morgan Housel, Psychology of Money

Video Interview: How To Invest

Highlights:  

"When you're 21, you don't know a lot about investing."

"If you don't understand the numbers, you should not be investing."

"Everybody wants to be rich this week."

"There's more than one way to be a good investor."

Short Story: School & Life Teachings

A very interesting short story from Matthew Kobach:

School: “Here’s the answer. Now tell me the answer.” 

Life: “There might be an answer. There also might not be an answer. Go find out.”

Seven Investing Rules

 

Do your research. Invest in what you know. Embrace change. Stay away from hot investment tips. 

Watch the video to find all the seven investment rules! Learn to become a successful investor. 

Paradoxes of Trading

"Paradoxes of Trading. The more money you make, the bigger your drawdowns will become. Paradoxically that fear of those bigger drawdowns holds many people back from getting bigger."

-- Steven Goldstein, Trader Performance Coach and host of the The AlphaMind Podcast

Greatness Takes Time

"You can't force experience... that takes time. Be patient with yourself and stay the course. With a good plan and persistence, everyday you take step in the direction of your dreams, while those who want it fast without putting in the work give up and quit.

Greatness takes time... stay the course."

-- Mark Minervini, momentum stocks trader profiled in the The Stock Market Wizards

The Secret For Success

My secret for success: When someone has more success than me, I pull up a chair with pad & pen and shut my mouth while I listen and take notes. I'm willing to put my ego aside and learn from success instead of envying it. No matter how successful I get, I maintain this humility.

-- Mark Minervini

PS: Mark Minervini was profiled in the Stock Market Wizards book, the third book from the Market Wizards books written by Jack Schwager. Jim Rogers was profiled in the original book, Market Wizards. 

Bitcoin & Investing Mistakes

 Sharing some interesting reading on Bitcoin:

Bitcoin: A New Kind Of Bubble?

Roubini: Bitcoin Has No Role In Portfolios

The Bitcoin Mania On CNBC

Investing quote of the day, 

“A mistake is not something to be determined after the fact but in light of the information until that point.”
-- Nassim Taleb

Thought of the day,

"When you realize there is nothing lacking, the whole world belongs to you."
-- Lao Tzu