May 5th, 2021 – Factual Macro – Issue 0064 – Year 3 – Factual Manhattan L.L.C. – Author: Marcelo Marini
Dear subscriber,
This is our Economic Newsletter, the Factual Macro is an Macro Economic Newsletter that shows you ways to preserve your wealth for years to come.
In this Newsletter there is no portfolio for you to follow, instead you will receive valuable information to help you protect and grow your wealth from now on. Every month our founder Marcelo Marini exposes his opposite thoughts to show ideas that you will not find anywhere else.
Default
April had less companies defaulting. The economic recovery seems to be getting back on track and jobs reports are much better than previously thought. Some countries are increasing their GDP expectations and more people are able to work, travel and event go to public events. World seems to be much safer than a year a go and that can drive more prosperity to people and companies (in the end, people). Old sectors can get back on better financials sooner and we hope the sanitary world is more predictable than the economic world.
Economy
Although economy seems to be breathing better. Equity, Bonds, Commodity and Cryptocurrency are a bit strange. That’s why uncorrelated investments works well for diversification of assets. Sometimes it’s really difficult to predict anything and the greater risks to investing comes from man’s decisions with others money not theirs, and that can make any market collapse in a unpredictable way, lessons learned, it’s always better to diversify and hope for the best with a uncorrelated portfolio. Least but not last, the better the earnings the more predictable the future incomes. Stay safe and still betting on knowledge not recommendations.
COVID-19
Now we can see the benefits of money. The richer the country the faster it’s vaccination development and action with it’s people. More action and less talking. We don’t have any idea of the new variant, virus or some other not so good news but still it seems that the world is safer than on our last issue.
Conclusion
Zero rates world has made banks going crazy and investors take further steps on the Real Money world (equities and commodities ) but we are far from the end. The more knowledgeable the investor the better he can behave in the financial markets. A well balanced portfolio is a safe harbor to the long term investor. We think that stocks with strong earnings and cash will be much safer in this zero rates world.
Now, take a look at some of our members questions.
Reader Questions:
Each month we’ll try to answer your most frequently asked questions. While we read every email, remember we don’t give investment advice. You can send your questions to us here.
How I know when it’s time to buy stocks?
Thanks for your question. There’s no such a thing as the best time to buy stocks, the theory said that is better to buy stocks when you have a good upside potential, meanwhile, some stocks are overvalued and some not, so you’ll never know until really calculate its value. But that can be tough to most investors, that’s why having a solid system can help you understand the best timing for buy some assets. In this case we recommend you to study the Factual Investing System.
How can I get fixed income by investing?
Thanks for your question. There are many complex ways that can be really tough to retail investors and the best we can teach you that can be applied to any investor is buying REITs and high dividend companies.
How to buy gold?
Thanks for asking. You can easily buy gold ETFs at any stock exchange or you can buy gold miners stocks traded in the US or globally, the main reason of selection one or another is diversification.
See you next month.
Marcelo Marini
