Disliked{quote} Your really on itEdit: why would you stay away from banks. I can't do stocks so I don't track them much. I was thinking they are possibly under valued currently and rates for rise in a few years plus more personal saving to increase Edit. Appreciate you sharing source also... Don't get that much here
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Track the airline industry. Massive leasing, loans and fees. Most of the financing booked in the banking sector. Same goes for massive oil tankers.
When corp bonds start to default massively and balance sheet shrink like snow in may, then look for cheap price-earnings, in sectors who traditionally used to deliver a fat dividend. But it all depends on the investment objectives and horizon: generates revenues? growing assets? retirement planning? Estate/inheritance planning? etc...
So to each specific needs fit a tailored plan.
Current environment now is over-inflated share price and many gone-bad loans that will have to clear out, one way or the other.
Mature tech firms, with a stable profit generating customer base, whose services are likely to continue to sell would be a good target.
First investment starts with education, then second is real-estate. The magic of mortgage, when scientifically engineered, is a real miracle to personal asset growth.
Creating an automated online revenue flow is also a good idea.
Only when a main revenue flow is on autopilot, then would I recommend venturing into owning shares.
But even then, ETFs are way easier to manage. New algo todays are making wonder there and transaction costs are going down.
Cv19 not striking everywhere the same way. Geographically and by sectors.
The magic of money being printed and then suddenly evaporating overnight in market crashes is really truly a very fascinating phenomena.
Also the magic of interest rate: imagine you create 1 unit. It comes with an interest rate. now 1 is in circulation, but 1.10 need to be back, due to the interest. Now. Where do you get the extra 0.10 from. Well, you need to print it. And it in turn also comes with guest what? Yes, another due interest. And that keeps on. Maybe until negative interest? And then there is interest on interests.
Most people doesn't know the difference between the mechanism of compounded interest and simple interest. You bet your banker does. He will gladly give you a loan with compounded interests and sell you investments generating simple interests.
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