Smart ways to invest and attain early financial freedom

My readers would know that I had sold off all my stocks in Feb 2016 and entered gold through the ETF route – this was done as I feared a market crash due to China. My forecast was wrong (thankfully) and things improved from March onwards globally and there was a semblance of stability and small growth since then. Big investors like Soros and Druckenmiller had also moved to gold and predicted a China induced crash at that time. In the past 9 months- I have been sitting and seeing markets go up and select stocks zoom up and the stocks that I know well and had invested (and sold) had all zoomed up and were not in a price range to re-enter. My investments in gold in the meantime did OK - thanks to Brexit and the general volatility, I did appx 10% in the past 10 months. But I have been waiting in the side-lines to enter my favourite stocks for the past two months. The Trump win has given the opportunity that I have been waiting for. Thanks to Trump, global money i

Friends - I do a lot of reading daily and I would like to share some of good content, that I think will add value and over time make you richer. Peter Lynch is a legendary investor who retired in the 90's. For over 20 years, he managed Fidelity's Magellan fund in the US, which gave around 29% ROI per annum under his stewardship and was the best performing fund worldwide in that era. In his book "One up on Wall Street", he shares his stock picking style. The book is very easy to read and gives one a very good idea of how the mutual fund industry works and how one should identify good companies. Highly recommended book for those who invest in stocks and mutual funds.

Brexit was not expected – most people assumed that the British will vote to stay in the EU and hence when the results came out yesterday, there was shock and surprise. The dollar strengthened, the pound weakened and stock markets as usual over reacted and fell globally and gold rose by about 4-5%. But these are all reactions from a market that is full of traders who try to predict what will happen in short term and try to make money on a daily basis. In the long run, I believe that not much will change. Brexit does not mean that UK will stop being part of the global trade and that the British will close down their country and will become an Albania. Life will go on in the UK and over time they will untangle the mess and will live happily ever after. Having said that, one still needs to look at reasons for Brexit and see how it will impact us in the long run. Globally the gap between the rich and poor has increased in the last 50 years and with the tremendous

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Friends -First the disclosures - I am writing these posts to share my investing ideas and where I am investing my money. I am not recommending that you do what I am doing. Second disclosure – this is a long post – so be aware before you start reading. My last post advised you to get out of the stock markets as soon as possible. Till that post, for the past few years, I have been urging everyone get into stock markets through equity MF’s and direct equities. My past week’s actions have come from my belief that at volatile times like these, we need to be actively managing our assets. All I am doing is basically selling assets that are going down (equity) and buying assets that are going up. In the past few years, stock markets have done well and all of us made money. However, since early 2015, the markets have not performed - Sensex is minus 21% in the past 12 months. After watching and analyzing the markets for one year, I have turned bearish. I

Friends - If you have invested in equity MF’s - then I guess you would be seeing an erosion of value in the past few months. Normally in such situation, I would be recommending that you invest more and stay invested as the future is positive for Indian economy and that will have a rub off in the stock markets. However, I have turned my recommendation over today and I am recommending exiting all your equity MF’s for the time being. The reason is that the next few months look very volatile -the reason is not Indian economy – but the global factors – China is main the reason for this volatility – There is a fair amount of fears of further devaluation of the Yuan - (