Smart ways to invest and attain early financial freedom

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

2014 was a wonderful year – this was the year when most investments (except gold) gave great returns – there is a good chance you have made decent returns if you were either on Direct Equity or MF or Real estate or even Debt funds. So what does 2015 look like? Looks good. Here are my recommendations for 2015 –areas where you can make 20% plus returns:   Direct Equity - Stay invested in equity and increase your exposure to equity.  I believe 2015 will be the year of equity markets in India. Globally US is doing better and EU, Japan are struggling, China is slowing down and the Emerging countries like Indonesia, South Afr

I believe that quite a few of my readers have investments in gold through the ETF route, as part of portfolio diversification. Some of my readers have asked me this lately-  “what do I do with my Gold ETF’s – do I sell it? or do I keep it?.
I know this is late by two weeks –I was travelling for book sessions to Pune and Delhi for the past two weeks and hence I could not blog. In all my book sessions, this topic came up – should we invest in gold or not? So here is my take – If you follow my blogs or have read the chapters in my book on Gold– you would know that: Indian price of gold = “Global price of gold” X “USD / INR conversion ratio”.