In today’s live session we kicked off by answering one of our member’s questions about Bonds.
What is a Bond?
In short, it is a loan that the bond purchaser, or bondholder, makes to the bond issuer. For example, if an investor is buying a government bond, they are lending the government money. Government bonds are seen to be one of the safest investments in the world.
You can read the full article here to have a better understanding.
What is a Bond?
We then looked at what is an investing pyramid that is relevant for individuals and a strategy many hedge funds and Banks use when they make their investments. As the saying goes “don’t put all your eggs in one basket”
What is an investment pyramid?
Alfonso Peccatiello was the Head of Fixed Income Portfolio Management for ING Deutschland and managed more than 20 billion euros. He explains in the video below how he predicts Even Lower Asset Prices Ahead.
Here is the link to his podcast on “how to avoid stupid mistakes” which was released yesterday. This is relevant to ALL types of investing & trading. Billionaire Hedge fund manager Paul Tudor Jones says:
‘‘The most important rule of trading is to play great defence, not great offence.
Every day I assume every position I have is wrong.
I know where my stops are, and I do that so I can define my maximum drawdown.
At the end of the day, the most important thing is how good you are at risk control.’’
Paul Tudor Jones, CEO of Tudor Investments
Ashley also spotted a Head and Shoulders pattern live during the webinar session on the US 10 Year bond. Analysing it as it happened, the prediction is that it could drop 16% if it technically plays out.
What about the mounting worldwide debt?
Then we spoke about why we need a new monetary policy system because the current debt all around the world is out of control taking into consideration various factors.
For example, one website actually claims that the US debt is actually a whopping $142 trillion if they add other debts to it which the government isn’t showing.
Can the US Default on its own debt? Very Unlikely because then they will lose the safe-haven status.
Here is the link to keep track of the world debt clock
World Debt clock
There are many videos that show you on YouTube how money is created out of thin Air including a member from the Bank of England
How money is created out of thin air
BOE explains how banks create money out of thin air
Also, I’ve added Mike Maloney’s video which has nearly 9 million views. He is explaining the biggest scam in history. You should definitely watch it to understand how the monetary system has been operating for all these years.
At some point in the future, this will need to stop as it can’t go on forever. Here is a post that explains how A central bank digital currency (CBDC) looks increasingly likely and how it could reduce government debt by up to 75%.
In this example, the author looks at how a Digital Euro could save the Eurozone.
How the Digital coin could save the EuroZone
Here are some other links which I mentioned I would add in the post during the webinar.
The Newspaper Journal in the UK writes some interesting articles every week
The website below has information on various countries, imports, exports etc.
Stock market Rally
I also spoke about the recent stock market rally that we are having and why I think it is temporary.
The consumer spending figure was up last Friday but then if inflation is running at 9% surely people are simply spending more to keep up. It is NOT a sign that the US economy is growing in a healthy way.
We can see it all happening in our streets right now. Groceries are up, Fuel has skyrocketed. Basic essential prices are also up. This is forcing people to spend more and only buy the essentials they need to survive.
at 56 minutes into the video, I shared an oil support company that I have invested in and the reasons why. It is a less direct way to invest in the current oil price boom.
What’s happening in the housing market?
Ashley shared a couple of posts during the webinar showing that house prices have stopped increasing and have come to a halt. People in the UK and US have been discounting the prices to sell the properties to attract buyers.
Michael Burry from the movie “The Big short” who predicted the 2008 housing crash has said about the housing market in the USA “its like watching a plane crash” He had also warned a few months ago that the stock market cannot continue like it did and there would be a much bigger crash.
well it has started to happen but we don’t know yet if it will crash further.
In the UK houses, sales have now slowed down, especially after the Covid related stamp duty (tax relief) was withdrawn. This was introduced to help people buy houses, but ended up throwing fuel on the fire as house prices, especially out of the big cities, rose dramatically.
The price of houses rose month on month in the past couple of years but has now started to slow down.
The cost of living has increased, it is also taking longer to complete the sale of a house. People are also relocating to places where the cost of houses are cheaper.
UK house markets start to slow
The final topic was I explained a question which was asked in the forum about Incorporating in Delaware, you can skip to 55 min in the video to listen to it.
Here is also a link which explains the Advantages and Disadvantages of Delaware.
Advantages and Disadvantages of Delaware
You can watch the full webinar video below, click on the arrows, the bottom right to watch full screen: