Dateline: your earning years. Do you have a financial advisor? Do you want to step off the income treadmill? Speed up your retirement? I wrote about this a couple years ago but market conditions merit a revisit.
The primary investment vehicles: mutual funds, financial advisors, 401s, IRAs, ETFs etc rely on 'diversification.' Are you paying 1.5% annually to be told to park your money into (yawn) mutual funds (snore)?
Pros & amateur investors alike declare 'you gotta diversify.' Here's the definition of investment diversification they don't know or won't tell you:
Diversification is selling the winners to buy the losers.
Or more expanded, via Seeking Alpha:
Another drawback of investing in ETFs is that many of these funds hold positions in hundreds of individual stocks, resulting in a phenomenon known as "diworsification," a play on the word diversification. Diworsification occurs when investors pursue diversification for the sake of diversification, which can actually worsen the risk-return trade-off in their portfolio.
We're currently in a shit market, all year. Not gonna get better. Not for a long while anyhoots. Ergo, your IRA, 401, 529 etc are all tanking, no? Tanking ugly what my friends tell me.
Not for me though. For 2 reasons. I saw this coming a year ago and converted most of my stuff to cash (technically short-term T-bills). Update Sep 2023: moved all T-bills to TCPC.
The more interesting aspect, and why I'm writing this, is to tell you get out of this watered-down risky mutual fund shit and put your money into actual winners.
Meaning: do your own research. Start looking for winners. Or at least, avoid these market crashes. Make inflation less a concern to you & your family's future.
I'm talking about individual stocks, or non-diversified stuff. Gold, silver, crypto, Amazon, oil, whatnot. Those are up to you & your research.
Here's what I use for research, big fan: Seeking Alpha. Get yourself a free account. Sharp writers & analysts there.
Myself? Outside of the safety of my T-bill piggy bank, I'm heavy into a couple still in development drug stocks & some crypto (actually bitcoin miners; explosive growth when bitcoin rebounds). Risky? Maybe, but take a look at your 401 before you claim to be in risk-free stuff.
Ok here's your pellet of reinforcement for reading my blurbs, something useful: 2 stock tips. Put every spare dollar you have into DARE; that timeframe is 1-3 years out. 12 drugs in pipeline, all showing progress. For fat stacks when Bitcoin rebounds in 2024: MARA & BITF. For gnarly dividend yield sans risk: TCPC.
