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.”