Share to Twitter Share to Linkedin Sir John Templeton was a twentieth century American-born British investor, banker and fund manager. He entered the mutual fund market and created the Templeton Growth Fund, which averaged growth over 15% per year for 38 years. He once said, “To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude.” Warren Buffett also once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.” Easier said than done, I hear you say. How do you keep your head around you when everyone is losing theirs? Thinking contrarian has always been a great strategy and one which I have employed extensively over the years. Naturally, to be honest. Thinking differently to the crowd requires patience, discipline, and very little emotion. These are traits that sometimes have to be wired (or indeed forced) into your brain. Especially when you … [Read more...] about Crashing Stock Markets Can Provide Opportunity For Longer Term Gains. But Do You Have The Stomach For It?
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Share to Twitter Share to Linkedin Topline MicroStrategy, the data analytics firm helmed by staunch bitcoin bull and former billionaire Michael Saylor, disclosed its first batch of bitcoin purchases since the beginning of the cryptocurrency market's intense sell-off over the past two months, revealing it has yet again doubled down on its commitment to the world's largest cryptocurrency despite investor concern over its position amid the steep drop in prices. Key Facts In a regulatory filing on Thursday, Virginia-based MicroStrategy, which owns more bitcoin than any other corporation in the world, disclosed it purchased approximately 480 bitcoins for $10 million in cash, or $20,817 per coin, between May 3 and Tuesday. The company, which started buying cryptocurrency for its balance sheet in August 2020, says it now holds approximately 129,699 bitcoins, purchased for nearly $4 billion, or an average price of $30,664 per coin—implying the firm's … [Read more...] about Saylor’s MicroStrategy Bought Another $10 Million In Bitcoin As Crypto Markets Lost $900 Billion In Value
Share to Twitter Share to Linkedin In early September 1939, the financial press (i.e. Economist magazine) wrote of the robustness of financial market indices, notwithstanding the outbreak of war, and the carnage that would come. Usually, in less dramatic circumstances, markets have a tendency to fall in the buildup to geopolitical conflict, and then rally thereafter. To date, this pattern has held, though like the aftermath of the outbreak of the COVID pandemic, there is a moral dissonance between human suffering and rising equity prices. Two years ago, the COVID related rally in prices (markets doubled from their COVID lows) the rationale was that aggressive fiscal and monetary policy, in the context of an accelerated digitization of economies, would boost valuations. End of QE Now, the hangover from that stimulus - a multi-decade high spike in inflation is undercutting bond markets, and arguably should also prove more demanding for equities. … [Read more...] about High Inflation Creates A Portfolio Crisis
Share to Twitter Share to Linkedin Topline The economy last quarter posted its worst annualized showing since the pandemic-induced recession in 2020, the government said in an updated release Wednesday, blaming an unexpected decline in economic activity on the omicron variant of Covid-19 and decreased government assistance. Key Facts The U.S. economy shrank at an annual rate of 1.6% in the first quarter of 2022—the first decline since the second quarter of 2020, the Bureau of Economic Analysis reported Wednesday in a worse-than-expected update to last month’s figure, which showed a decline of 1.5%. The update primarily reflected softer-than-expected spending on business inventories and residential investments, which was only partially offset by an uptick in consumer spending, the government said. In the first quarter, a record wave of Covid-19 cases spurred by the omicron variant resulted in continued restrictions and business … [Read more...] about U.S. Economy Shrank Worse-Than-Expected 1.6% Last Quarter As Recession Fears Grow