During any 30-year period, the American economy, as represented by SPY, an exchange-traded fund mirroring the S&P 500, which itself is a good representation of the American economy, has gone up about 1,000%. During the same period, the average mutual fund investor made less than 250%! Where does the difference go?
Top-earning professionals such as physicians, lawyers, and dentists can make as much as $400,000 annually. The average full-time worker earns about $60,580 annually, so we can see that education pays.
It would take two years of top-earning professional income to equal what a top-earning Wall Street CEO makes in one week! That is where the difference goes!
What about hedge fund managers?
In a good year, top-earning hedge fund managers can make billions, that is, billions, with a b.
They do that by charging 2 and 20. That stands for 2% of the money you give them to manage and 20% of any growth. They don’t participate in the inevitable market declines.
How to invest in hedge funds
YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join UsWhat Rosi and I did when the NYSE opened at 9:30 AM yesterday.
Call me if you want to discuss this. (705-441-4566)
Wall Street is optimistic about Trump’s pro-business stance.
We have stated this many times previously, and we are saying it again: the best, safest way to earn money in our accounts is to write (sell) covered calls or cash-secured puts on the US economy as represented by SPY, an exchange-traded fund (ETF) tracking the performance of the S&P 500. Sell with the shortest, expiry dates possible. For the past 200 years, this approach to investing has earned a 16% annual return.
Americans can do that in all their tax-advantaged accounts (401(k), IRA, HSA, FSA, ESA, ABLE). Canadians can only sell covered calls in such accounts (RRSP, TFSA, RESP, RDSP, FHSA).
See ChatGPT for specifics about any of these.
Canadian investors must open a margin account to sell cash-secured puts and have at least $60,000 to invest in one board lot (100 shares).
This is the only reason to have a margin account. It is possible to lose more than 100% of your money in a margin account, so don’t go there for any other reason.
Here are the details.
YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join UsTrump. Tariffs. Electric cars. Our portfolios.
Generally, economists think that tariffs are not good for promoting economic efficiency and our welfare overall. Trump seems to be unaware of that.
Almost all countries have mandated that nothing but electric vehicles be sold soon in their countries. Why?
The list of problems associated with internal combustion (ICE) vehicles is long. Here are a few items.
There are nearly one and a half billion vehicles with ICE engines on the planet. They contribute significantly to increased CO2 levels in the atmosphere and the resulting global warming. Further, the manufacturing of ICE vehicles is energy-intensive. Burning fossil fuels to make ICE vehicles contributes to global warming. In addition, particulate matter and black carbon come from ICE vehicles’ tailpipes. Both contribute to global warming. Trump seems to be unaware of that.
Tesla manufacturer Elon Musk has donated just under $300 million to support Trump. That makes him Trump’s largest single donor.
It is no secret that Trump likes money. It will be interesting to see how, in the future, he reconciles his love of the money coming from Elon Musk and his dislike of electric cars.
And finally, Trump is pro-business. 
He will do everything to make business boom. Along with that, our portfolios will grow.
However, we must be aware that this will not go on forever. As J. P. Morgan stated years ago, markets will fluctuate. Goldman Sachs and the Bank of America predict zero to one percent return on market investments for a decade!
As I stated in a previous post, make sure you have a 50/50 asset allocation (60/40 also works well, as does 55/45 or any similar ratio) and rebalance your asset allocation every time market movement disturbs it.
Do not try to time markets.
In a rising market, cash is trash. In a declining market, cash king.
Intelligent investing requires no luck.
Good luck!
How Rosi and I did two days ago. The market is overvalued. Will it continue to rise?
How expensive markets are today is the best predictor of stock market returns over the medium term. Trumps support of business will likely continue to push the market up – for a while. Make sure you have 50/50 asset allocation (60/40 also works well as does 55/45 or any similar ratio) and rebalance your asset allocation every time market movement disturbs it. Do not try to time markets. In a rising market, cash is trash. In a declining market, cash king. Intelligent investing requires no luck. Good luck!
What to do when the New York Stock Exchange opens today, January 21, 2025
Call me if you want to discuss this. (705-441-4566)
Wall Street is optimistic about Trump’s pro-business stance.
We have stated this many times previously, and we are saying it again: the best, safest way to earn money in our accounts is to write (sell) covered calls or cash-secured puts on the US economy as represented by SPY, an exchange-traded fund (ETF) tracking the performance of the S&P 500. Sell with the shortest, expiry dates possible. For the past 200 years, this approach to investing has earned a 16% annual return.
Americans can do that in all their tax-advantaged accounts (401(k), IRA, HSA, FSA, ESA, ABLE). Canadians can only sell covered calls in such accounts (RRSP, TFSA, RESP, RDSP, FHSA).
See ChatGPT for specifics about any of these.
Canadian investors must open a margin account to sell cash-secured puts and have at least $60,000 to invest in one board lot (100 shares) of SPY.
This is the only reason to have a margin account. It is possible to lose more than 100% of your money in a margin account, so don’t go there for any other reason.
Here are the details.
YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join UsCar window breaker and seatbelt cutter, how we did yesterday, what we will do today
Call me if you want to discuss any of this. (705-441-4566)
The picture shows the 5-inch high car window breaker and seatbelt cutter I recently got. Consider getting one. We hope that we never have to use it, but it has saved many lives when cars roll over and you can’t open the door or when a car falls into a body of water or small children accidentally get locked in a car and other situations.
These posts are about investing, so let us talk about investing.
Yesterday, January 13, Rosi and I sold covered calls on SPY in three accounts. We made $153 US per contract. We have enough shares of SPY to allow us to live comfortably on that income. It took us less than five minutes to do this.
What are we going to do today, January 14?
Here are the details.
YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join UsWhat to do when the New York Stock Exchange opens today, January 13, 2025
Call me if you want to discuss this. (705-441-4566)
The best, safest way to earn money in our accounts is to write (sell) covered calls or cash-secured puts on the US economy as represented by SPY, an exchange-traded fund (ETF) tracking the performance of the S&P 500. Sell with the shortest, expiry dates possible. For the past 200 years, this approach to investing has earned a 16% annual return.
Americans can do that in all their tax-advantaged accounts (401(k), IRA, HSA, FSA, ESA, ABLE). Canadians can only sell covered calls in such accounts (RRSP, TFSA, RESP, RDSP, FHSA).
See ChatGPT for specifics about any of these.
Canadian investors must open a margin account to sell cash-secured puts and have at least $60,000 to invest in one board lot (100 shares) of SPY.
This is the only reason to have a margin account. It is possible to lose more than 100% of your money in a margin account so don’t go there for any other reason.
Here are the details.
YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join UsSimplify your financial planning
Call me if you want to discuss this. (705-441-4566)
Here’s a list of popular personal financial planning tools to help you manage your money effectively. These tools range from apps and software to online calculators and templates.
You could spend endless hours following the above or hire an investment advisor at a cost.
1. Budgeting Tools
- Mint: Tracks your spending, budget, and savings automatically by linking to your accounts. Provides insights and reminders for bills.
- YNAB (You Need a Budget): Helps you create a proactive budget by assigning every dollar a job.
- EveryDollar: A simple, zero-based budgeting tool created by Dave Ramsey’s team.
2. Investment Management
- Personal Capital: Combines budgeting with tools for tracking investments, retirement planning, and net worth.
- Betterment: Automated investment management and goal-based financial planning.
- Robo-Advisors: Platforms like Wealthfront or Schwab Intelligent Portfolios offer portfolio optimization and personalized strategies.
3. Retirement Planning
- Fidelity Retirement Score: Estimates whether you’re on track to meet your retirement goals.
- Vanguard Retirement Nest Egg Calculator: Helps assess how long your savings might last in retirement.
- Social Security Quick Calculator: Provides an estimate of your future Social Security benefits.
4. Debt Management
- Debt Payoff Planner: Calculates payoff timelines for debts based on your strategies (e.g., snowball or avalanche methods).
- Undebt.it: Tracks your debt payments and progress.
- Tally: Automates credit card payments and helps optimize interest rates.
5. Savings Tools
- Digit: Automatically saves small amounts for your goals based on your spending patterns.
- Qapital: Encourages savings by rounding up transactions or following customizable rules.
- Chime: Offers round-up features and automatic savings.
6. Tax Preparation
- TurboTax: Guides you through tax preparation with step-by-step instructions.
- H&R Block: Offers both DIY and professional tax services.
- IRS Tax Withholding Estimator: Ensures the right amount is withheld from your paycheck.
7. Expense Tracking
- PocketGuard: Shows how much disposable income you have after bills, goals, and necessities.
- Spendee: Customizable categories for tracking spending and shared budgets.
- Wally: Helps you log and manage expenses manually.
8. Comprehensive Financial Planning
- Quicken: Offers tools for budgeting, investment tracking, and bill management.
- Zeta: Tailored for couples, it helps track shared expenses and goals.
- MoneyPatrol: Aggregates financial accounts and provides proactive alerts.
9. Online Templates & Calculators
- Google Sheets/Excel Templates: Budgeting and financial tracking templates, often customizable for specific goals.
- Financial Goal Calculator (Bankrate, NerdWallet): Calculates how much to save for milestones like buying a home or college education.
10. Advanced Planning
- eMoney Advisor: Comprehensive planning software used by financial advisors but available for individuals.
- WealthTrace: Robust platform for DIY retirement and financial planning.
- RightCapital: Combines cash flow planning with tax-efficient withdrawal strategies.
As I said, you could spend endless hours following the above or hire an investment advisor at a cost.
Here is how to simplify the matter.
Why is the Canadian dollar so weak?
Since we started this program in December 2017, we have encouraged investors to stay in the American dollar. Most investors today want to do exactly that.
The strength or weakness of the Canadian dollar (CAD) depends on various economic and geopolitical factors. Here are some key reasons the CAD might be weak:
- Oil Prices: Canada is a major oil exporter, so the CAD often moves in tandem with crude oil prices. A drop in oil prices weakens the CAD.
- Interest Rates: If the Bank of Canada has lower interest rates than the U.S. Federal Reserve, it can make the CAD less attractive to investors.
- Trade Imbalances: A trade deficit (when imports exceed exports) can weaken the currency.
- Economic Performance: If Canada’s economy is underperforming compared to other major economies, it can lead to a weaker CAD.
- Global Risk Sentiment: During periods of global uncertainty, investors often move to “safe-haven” currencies like the U.S. dollar, which can weaken the CAD.
- Exchange Rate Trends: Currency values can also be influenced by speculation and long-term trends in the forex market.
Over the last 50 years, the Canadian dollar has been stronger than the US dollar only for two short periods. Stay away from it.
Yesterday, Rosi and I did what all investors should. Take a look.
Call me if you want to discuss this. (705-441-4566)
We sold covered calls on SPY first thing in the morning with an expiry date on the same day at the end of trading.
We got $197.50 US per contract. We have enough shares of SPY to live comfortably on that income without touching the principal.
We did this in less than five minutes after the market opened at 9:30 AM.
If you don’t know how to do this, I will happily show you at no charge. However, I would ask you to make a contribution to our chess tournament.