I don't know whether BTC will continue to float, or the Biden administration will bring it down soon. But then again, I am not writing this report on Hunter's laptop.
I don't mean to be flippant, but it's been a bit boring in the markets over the past week, so it is hard to get too excited.
Equity markets have held reasonably well, and we cannot discount that we might see another stab higher at some point. However, I am still worried about earnings and a lack of consumption, so I do not trust the optimism others are trying to promote. Inflation might ease, keeping interest rates down, but I suspect that will not do much to help the real estate industry.
I am encouraged about the efforts being introduced to get the US energy industry moving again, as anything done to bring down the price of energy will help us all, but this will only happen after a while.
The energy risk remains on the upside, especially with the increase in geopolitical tension. But I will not complain if I am wrong about this.
I am not a believer in making money from wars or sabre-rattling, but we are entitled to hedge, as best we can, against potential global problems, and there are plenty.
Away from the politics, some exciting stuff is going on, including at JPFS and SGT.
Indeed, I do like seeing other old, experienced guys bringing common-sense ideas and innovative products online. Moreover, after watching the podcast, I spoke to the guys and learned they have some tremendous, diversified products in the pipeline, so it's worth keeping an eye on what they are doing.
I keep banging away at the need to be diversified, but it is so important.
I bought physical gold over a year ago and will keep it, but some excellent opportunities are appearing in the commodity space, which we could exploit over the short or medium term.
I mention a few things I am looking at, especially if there appears to be a decent risk/reward ratio, but the choice is always yours at the end of the day; my stuff is just educational.
I appreciate that many new investors have come into the markets because of a meteoric rise in cryptocurrencies and that some of you are not too happy with how things have worked out over the past year.
However, don't let one bad trade stop you from investing. Of course, there is a risk, but decent rewards are possible if you manage this risk properly. You have to put in more time and effort into learning how the financial markets work.
After 50 years, which includes my fair share of losing trades, it's not a bad way to make a living or to add increased value to your portfolio.
Some players do not have the risk appetite for trading financial markets, and some get too emotionally involved with the positions they undertake, which is common. In the current investment environment, there is so much hype and unqualified opinions that it is hard to see the wood for the trees.
But that doesn't mean you should completely turn your back on the opportunities.
Learning how things work and taking control and responsibility for investing and your financial future is better. Explore products which can add value to your portfolio or hedge against adverse economic times. It is never easy, and there are no guarantees, but it can be gratifying.
Alternatively, if trading is not your thing, it doesn't suit your personality, or you need more knowledge, look for vehicles which will manage your portfolio for you. That is what most people do.
We all hear about Blackrock and Berkshire Hathaway, but you must deposit a sizeable chunk of money to join their funds. Perhaps more than you wish to or can invest. With fractionalised investments, you can enter these funds with much lower amounts and still enjoy the returns achieved.
More importantly, with low entry, you can spread your exposure over a few different funds, and adjust this exposure at little cost if you prefer one fund's performance over another.
These products are an excellent option for the smaller or less knowledgeable investor, so if you are interested, take a look at them, or watch the podcast.
Until next time…. don't sit under any unidentified balloons.