What is up, Childish Investors?? It's that time of the week again, where we enter the business world, curate all the shit and bring the business world to you.
Trump is back at it again with another controversy, two weeks before the elections! 🤦♂️
And investors are in for a ride…
So… Are you ready to RUUUMBLE?
✅ Quick Overview
📌 When bullies get bullied: DOJ sues Google for alleged antitrust violations
📌 White House increases coronavirus-stimulus offer to $1.9 trillion
📌 Twitter locks the official Trump campaign account
📌 Berkshire Hathaway to pay $4.14 million to settle Iran sanctions violations claims
📌 DA DUM ~ Netflix turns to telecoms tie-ups in challenging African markets
🥊 Main Event of the Week
Get this: While the Trump administration was busy undermining the COVID situation, Trump filled his Wall Street buddies in on his actual concerns about the virus and the market...
If you had any open positions, you probably got f*cked last February. But they made millions.
Triggered yet? You're not the only one. It's a pretty serious matter that we call insider trading. And this might add up to the pile of legal cases against Trump...(Think recent tax fraud case)
👁 Sneak peek into the future
It's January 2021. Not a word is spoken in the audience as the hearing is about to start.
Biden just got seated in the back to enjoy the show. But Trump seems distant. He's staring at the judge and wonders how he got there in the first place...
All these legal suits had crushed him this past couple of months, to the point where he didn't have the heart to enjoy his favorite activity anymore... tweeting. And what good would that even be, he often said, now that Twitter forced him to remove POTUS from his bio.
Unlike Biden, most investors hated this transition: Biden was the new president, the economy was changing. Uncertainty (& volatility ofc) was the only constant nowadays.
But a few sensible investors knew where to look. And even managed to open some positions before the elections! Hint: Biden's policies
Sure enough, the prophecies came true:
First, Biden raised capital-gain taxes: In short, you could get taxed less in 2020 (0-20%) on assets held for more than a year. And Biden said, “You shall make smaller profits!”
Second, he taxed the sh*t out of the American elite.
Third, the Biden-Harris presidency was a big step towards an all-green world. Policies tilted in favor of green-oriented companies (Think electric cars)
Some fools rushed in on just about anything. And sure enough, the hype got to their heads.
But Childish Investors knew that unless you were in Trump’s friend group, you needed a solid investment strategy.
👶 Eat your veggies
There are two types of investors. Which one are you?
Defensive investor
If you don’t want to put in much time or energy. The downside, though, is that you get (almost guaranteed) minimal returns.
some rules to follow:
Diversify
Stick to large, top 30%, conservative companies
Companies with over 20 years of continuous dividend payments
A classic defensive portfolio looks something like that: 50-50 allocation between stocks and bonds/cash. With a reallocation when gains shift it to more than 55-45.
Aggressive investors:
If you want greater than average results, you have to be prepared for a lot of stress. And you need to put in the time to do the homework.
some rules to follow:
Find bargains. Through value investing (We’ll dive deeper into it in another issue!)
Be disciplined and consistent.
Stay rational. Don’t worry about what the market is doing.
A classic aggressive portfolio looks like this: 25% minimum and 75% maximum on either bonds or stocks (Whichever is more attractive)
Thanks for reading, guys. We really hope you enjoyed it! 😉
Tell us what you thought in the comments! And Stay Tuned for a lot more amazing content!
- Ryan & Zak
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Twitter >> @ChildishInvest