The year is 2022 and I've finally achieved my goal of reaching the 7 digit club. That's right have officially succeeded at becoming a millionaire. All my family and friends watched me accumulate my fortune regretting not getting into any of the stocks I mentioned while they were near bottom of the markets in 2016. They always had excuses like "I don't know how to set up a stock account" or "I have no extra money" so instead they continued to talk about how they wanted to invest while taking no action. Oddly enough though, they somehow have money now and are a genius about what stock broker to use. They are piling in the the same company's in the gold and uranium sector that I used as my vehicle to create my fortune and at a time I am starting to sell. For some reason they think now is the golden opportunity to jump in to these stocks after I have made 4000% gains from the majority of my positions. I tried telling them back when uranium was at $25 that that average all in cost to produce uranium is about 35 dollars and demand looks like its set to grow for the next decade, while the collapse in the spot price will create lower supply. They didn't understand how that was the real opportunity back 5-6 years ago. I also tried telling them central banks are printing huge amounts of money in the trillions! This will create inflation which will boost gold huge! You could tell they were confused as they zoned out imagining what the number even looks like.
As of now, gold is approaching 3000, and Uranium is approaching 200 level. I've closed all of my uranium positions and finally starting to close out on my gold stocks. Even back in 2016-2017, I had thought the price of Uranium would only jump up to the 70-130 dollar level but due to the inflation that has kicked in world wide caused the expense of producing the yellow cake to go up as well. Demand yearly is about 240 million pounds and supply has finally caught up which leads me to believe the price will go down over the near term since at these prices, more supply will continue to come on the market producing a glut. One company I used to profit from this Was Uranium energy corp (UEC) which went to about 45 dollars. That one position was about half my portfolio when I started to position myself for the Uranium bull market back 5 years ago. An incredible gain thanks to the great CEO Amir Adnani. I also Managed to load up on some shares of fission uranium (FCU) that went to up to over $20 a share, giving me a 2500% return! Of course I got some great gains with these two company's but I missed out on some extremely huge returns such as Skyharbour Resources (SYH.V) Which had a low of about 8 cents per share in 2015 to over $15. Talk about some incredible returns, I feel like I just did average. A 5k investment at the bottom of that would had been a value of about a million today!
I have just started to close out some of my mining share positions. They all ran up huge! Brazil resources (Gold.v) is at $30 today, and I first started buying back when it was .50 cents! What a run that stock did. I believe the gold bull market could end here as central banks are finally starting to control the inflation levels but I plan on keeping 10% of my positions no matter where the market goes. If we drop 80-90 percent from these levels, Ill simply buy back the same amount of shares I sell today, since this market works in cycles. Low prices causes low supply which causes higher prices and that leads to higher supply. Works like a charm! I got into Northern Dynasty (NAK) a little late catching it close to the bottom after a really negative article from some short selling scammer company. It went from .28 cents to 3.45 in a year, and i managed to load up on some shares at the 1.30 level after the crash. Trump changed a lot with the EPA which led to the pebble project getting the permits it needs. The stock price jumped up huge tripling in a couple months on this news after already rising with the gold price the couple years. This mine is still years away from producing gold, but for the next cycle, this will be a good play. I have already closed my position on this one. One great stock I missed out on was Minaurum gold inc (MGG.V). It was trading at about .04 cents around the low of 2016 and has surged past $8 now! They have a world class deposit in mexico, and back at the bottom of the market, that mine was really unknown. There are many other company's that had those amazing returns but the risk of trying to find the right stocks were incredibly high.Those who bought near the bottom and held close to the top are multi millionaires from such small investments. I fear the people who watched me make my fortune that are now rushing into these stocks to get rich quick will losing most of what they put into these company's. Only time will tell, who knows. Maybe they will be joining me in the new millionaires club.
-John Hebein-Caunce-
Just a heads up, I do not recommend investing in any of the names above. I own some of the company's but not all. This is a fiction story. Do your own research and decide for yourself. I have no clue what the prices of any of these company's will go to. They could go to 0 even. I only suggest you educate yourself on the commodities and then decide if you wish to speculate in this highly risky market and on what company's.
Wednesday, 29 March 2017
Tuesday, 14 March 2017
Why I'm bullish on gold
One outcome I have believed was possible is for deflation to take over and cause the price of gold to crash but I have kept my bullish views on the precious metals sector for a really good reason. Mining company's have been cutting cost to try to reduce loses or become profitable since the price slipped in 2011. This has caused a lack of new money going towards exploration. This is great news since the demand is so high for the metals and mines have a limited life time. If a mine has a million ounces of gold and its mined up in a lets say a year as an easy number, but they only discover 500,000 ounces that year of in ground supply for future mining potential, that will throw off future supply. So future supply looks like it could be less. That is exactly what is happening right now, as well as high grading, which is mining only the highest grade spots of a mine leaving only grades that are not economical at these prices. Also there are not very many huge deposits being discovered. All of these are reasons why supply will shrink in the future.
What about demand?
I previously was worried about what if a deflationary environment was to come, and that would drop demand. That could be true, as 2008 showed gold dropped (physical metal seemed to be selling at high volumes though). Even if this is the case though, What has me bullish is the middle class in china and India is growing greatly and they are big buyers of gold! This is what Frank Holmes calls the love trade. This is new demand coming to the market as they have more cash to spend in the future! This will help drift the price of gold upwards, and if another harsh bear market was to hit gold, that would hurt future supply from even less funding for exploration, so the future bull market will just be that much greater. The demand will grow and supply for the time being will shrink until the price drifts upwards enough.
What about demand?
I previously was worried about what if a deflationary environment was to come, and that would drop demand. That could be true, as 2008 showed gold dropped (physical metal seemed to be selling at high volumes though). Even if this is the case though, What has me bullish is the middle class in china and India is growing greatly and they are big buyers of gold! This is what Frank Holmes calls the love trade. This is new demand coming to the market as they have more cash to spend in the future! This will help drift the price of gold upwards, and if another harsh bear market was to hit gold, that would hurt future supply from even less funding for exploration, so the future bull market will just be that much greater. The demand will grow and supply for the time being will shrink until the price drifts upwards enough.
Like Rick Rule says, the cure for low prices is low prices. I cant promise this is the bottom in the metals, but if its not, it will make the bull market so much great due to even less supply.
Tuesday, 13 December 2016
A great opportunity setting up: Uranium
As of today, the price of Uranium is going for 18 dollars a pound. This will result in a huge opportunity in the next couple of years. The average cost to product Uranium is about 31 dollars on average. The numbers present a huge loss for producers, and I believe the lowest cost Uranium producer in north america can produce it for about 22 dollars so everyone is taking a loss at these levels. This will cause mine closures which will cause the supply coming to the market to shrink. This will not have immediate effect because there is still an over supply on the market which is the reason for the price falling in the first place. Marin Katusa, who is a very smart guy in the resource sector when it comes to investments, says the over supply will last 6-18 months. I haven't done the math on this myself but I trust his is accurate. What this means when the over supply has been used up, we will see a nice rally in the price of uranium. I'm not sure what it will go to, but I know that the beat up companies in this sector will rally greatly. Profits will be made if you put your money in the right companies. I have not yet invested, but I will be entering a position starting in 2017 so I can position myself for possible gains. My belief is you could see 200% gains or more if your in the right company's. I personally am looking at UEC at the moment, but do your on research because these are risky plays and you can lose a huge amount, or all of your investment. There is great risk involved in these trades always.
Monday, 10 October 2016
Update on the markets
Last week, gold had a nice drop. It broke its support line of the 1305 area which triggers the stop loss which is the reason for such a dramatic fall in price. I was being careful of this level being broken, and as I saw it break, I was hitting the sell button on all my mining shares. I sold them for a loss compared to the day before, but still closed profits about 150% roughly year to date. I managed to buy back the majority of them all below what I sold them for, and now I currently wait to see how this will play out. The support of 1305 range will become a resistance now, so we could see gold go up as high as that on a bounce. The bottom is 1242, so that level will be support, if it breaks that level, Ill most likely sell my shares again, On the shorter term, it is a bit more trickier to predict where the markets go, but on a longer term, I could imagine silver and gold go up. I am still cautious about the precious metals though. Deflation is overpowering inflation it would seem, which could bring down the metals. This would provide a fantastic buying opportunity, but perhaps if this plays out, wait for the massive printing to be started as a central bank guarantee to make gold prices higher.
The stock market is hovering still near all time highs, which is a bit of a surprise to me. I expected the markets to crash this year, which is still possible but I did not think about it being election year. I strongly believe shortly after the election, the stock market is going to plunge, but until then, the plunge protection team I'm sure is hard at work. That could be the reason for such the tight trading range lately. If Hillary wins, the market could have one last rally after the elections. If Trump wins, I'd imagine the market drops sharply on the day. It would seem more likely Hillary will win, but It seems like the media is trying to deny how big of a group trumps followers are. I do not know who will win, but I assure you the market will tank by the end of there term, and money printing never seen before will be started, unless the winner is Trump. I'd imagine he would not allow the money printing to happen. It would make me unsure of my metals position. If the metals break past its current support, I will wait on the stock market to drop so I can make money shorting that with my profits from the metals. When the trading range stocks are currently trading in break out, you will be able to tell if you should go long or to short.
Crude oil today looks like its breaking out of the 50 dollar level. This could be a false break out in the end, but it could be a good long position instead. I am not risking my money on this trade. I would feel much more better shorting it if it broke past the 40 level which will happen most likely if this is a false break out. Oil supply and demand are bad and will get worse, as we are most likely in a recession if not heading for one. This has been the third longest economic expansion (and the weakest one) and it is heading towards the second longest expansion quickly. A recession is right around the corner if we are not yet in one. This recession could plunge the price of everything causing deflation if quick action is not taken. If Deutsche bank fails, this could also cause a deflation crash since it would bring down other banks with it. I would imagine world leaders are not dumb enough to let this happen so I would expect them to be bailed out.
Thanks everyone for reading, these are my thoughts on the market. At a time like this, we have to be careful with our money and our investments. The future will be rocky and if the next recession is a crash like 08, these times will most likely be considered the second depression. Good luck to all in the investing field.
Where the markets are heading
Last week, gold had a nice drop. It broke its support line of the 1305 area which triggers the stop loss which is the reason for such a dramatic fall in price. I was being careful of this level being broken, and as I saw it break, I was hitting the sell button on all my mining shares. I sold them for a loss compared to the day before, but still closed profits about 150% roughly year to date. I managed to buy back the majority of them all below what I sold them for, and now I currently wait to see how this will play out. The support of 1305 range will become a resistance now, so we could see gold go up as high as that on a bounce. The bottom is 1242, so that level will be support, if it breaks that level, Ill most likely sell my shares again, On the shorter term, it is a bit more trickier to predict where the markets go, but on a longer term, I could imagine silver and gold go up. I am still cautious about the precious metals though. Deflation is overpowering inflation it would seem, which could bring down the metals. This would provide a fantastic buying opportunity, but perhaps if this plays out, wait for the massive printing to be started as a central bank guarantee to make gold prices higher.
The stock market is hovering still near all time highs, which is a bit of a surprise to me. I expected the markets to crash this year, which is still possible but I did not think about it being election year. I strongly believe shortly after the election, the stock market is going to plunge, but until then, the plunge protection team I'm sure is hard at work. That could be the reason for such the tight trading range lately. If Hillary wins, the market could have one last rally after the elections. If Trump wins, I'd imagine the market drops sharply on the day. It would seem more likely Hillary will win, but It seems like the media is trying to deny how big of a group trumps followers are. I do not know who will win, but I assure you the market will tank by the end of there term, and money printing never seen before will be started, unless the winner is Trump. I'd imagine he would not allow the money printing to happen. It would make me unsure of my metals position. If the metals break past its current support, I will wait on the stock market to drop so I can make money shorting that with my profits from the metals. When the trading range stocks are currently trading in break out, you will be able to tell if you should go long or to short.
Crude oil today looks like its breaking out of the 50 dollar level. This could be a false break out in the end, but it could be a good long position instead. I am not risking my money on this trade. I would feel much more better shorting it if it broke past the 40 level which will happen most likely if this is a false break out. Oil supply and demand are bad and will get worse, as we are most likely in a recession if not heading for one. This has been the third longest economic expansion (and the weakest one) and it is heading towards the second longest expansion quickly. A recession is right around the corner if we are not yet in one. This recession could plunge the price of everything causing deflation if quick action is not taken. If Deutsche bank fails, this could also cause a deflation crash since it would bring down other banks with it. I would imagine world leaders are not dumb enough to let this happen so I would expect them to be bailed out.
Thanks everyone for reading, these are my thoughts on the market. At a time like this, we have to be careful with our money and our investments. The future will be rocky and if the next recession is a crash like 08, these times will most likely be considered the second depression. Good luck to all in the investing field.
Thursday, 22 September 2016
Is gold a better investment than silver?
The gold bull market of this year, has brought a lot of attention to the sector. If you are new to this sector, you may be wondering which metal to buy, silver or gold? It is good to own both in my opinion, but I believe it makes more sense to have more silver than gold by a lot. Perhaps every 8 dollars you have in silver, you should have 2 in gold or around that range. The reason why I believe this is because the silver price moves a higher percentage than gold. If you like safety more, and don't need the extra reward, than gold is a better play. There is risk with owning more silver than gold. When silver goes up, it out performs gold in percentage but also when it drops, it also drops a bigger percentage so it all depends on if you believe this gold and silver bull market is here to stay or if its just a bear market rally. Both are possible, and both you can profit from. I myself like high risk, especially in this sector where its been beaten up so bad. Silver has gone up around 44% YTD while gold is up around 27% YTD roughly. There is one example of how silver out performs gold. If you want to take a look at the risk of a down fall, from the 2011 top to 2015 bottom, silver dropped about 70% while gold dropped closer to 45%, doing the numbers in my head so they may not be exact but close to. That is the extra risk involved in silver. It is possible the metals could drop lower, but assuming this happens, I would have to bet real estate would drop by 50-80% and so would the stock market. If this happens, the only safe play is physical cash since banks would be going under. This would offer tremendous opportunity though as well so be prepared if that does happen but my belief is the federal reserve and all the other central banks will print trillions to stop this. The government would go bankrupt if this were to happen since they would receive less tax dollars, they would default on the debt. They have to inflate rather than deflate in order to keep our current system going, which should change sometime in the coming years. When, I do not know but it is coming one day. You now know the leverage you can use through silver, there is even greater leverage using the mining shares, which of course come with an even greater risk since an individual company can go bankrupt at any time for a number of reasons which we can't predict. While silver is up 44% YTD, mining companies are up in between 100% and 500%! Thats incredible leverage, but of course that's not for everyone. The current pull back in the mining shares sector almost scared me enough to get me out of my positions watching my portfolio go down 37% roughly from its peak. It offers incredible leverage but its hard to be at peace every second the market is opened. You have to have a strong stomach for this leverage. They also dropped about 90% or more from there 2011 peaks. A lot of companies went bankrupt.
I would not recommend buying or selling, as the future is still unpredictable, but get educated so you can take advantage on upcoming opportunities. Thank you for reading, and wish you the best investing.
I would not recommend buying or selling, as the future is still unpredictable, but get educated so you can take advantage on upcoming opportunities. Thank you for reading, and wish you the best investing.
Wednesday, 21 September 2016
Is it time to buy gold?
Gold has shown great returns leaving everyone with a great question. Is it time to buy or time to sell. Daily, I have been getting worried and ready to press the sell button watching gold go near its support level down around 1305. I probably would of hit sell if it had gone to 1304! Luckily I didn't and japans central bank was a positive for gold, as well as the fed. No interest rate hike! That is only a short term move for the market I believe though. In order for me to be bullish on gold, we are going to have to get higher in the 1350s level and then break through that high around 1380. This could still be a bear market, and we could be experiencing a bear market rally. Thats what Harry Dent believes, who is a smart guy. He could prove to be incorrect with his deflation theory assuming that the fed printing trillions will not stop this when it comes. He could be right or someone like Jim Rickards could be right with their 10,000 dollar gold which seems more likely but only time will tell. I am still very skeptical of this bull market in gold, but I am heavily positioned to profit from it while being prepared to leave the market the second I believe it is going to reverse its trend to its bear market. I do believe much higher gold prices are going to come possibly up to 2500-3000 range, or higher. Yes higher, it is very likely considering we already know the reaction that central banks will do if they see any signs of deflation, which could be close considering America looks like its already in recession. They will print again and possibly go negative interest rates. I cant imagine gold going down in a negative interest rate environment. The way I view the gold sector is if your in the right stocks, you can only lose 100% of your investment, but there is potential to make 50x your money. Those odds, I like alot. I do believe gold has more room to go but we have a lot of walls to break before its in the clear bullish view so be careful and ready to sell if the market changes.
Thursday, 2 June 2016
The big crash
As of today, the major stock indices are close to highs. It must be time to celebrate and buy more for the breakout levels, right? I would disagree. The higher these markets go, the worse the reward to risk ratio gets for investors. I'd be selling into these rallies but I would not suggest to short sell it because there are ways to manipulate the markets upwards as it has been already in my opinion. The earnings for the majority of the stock market has been declining for about a year-two, but stocks have been rising, does that make any sense? The only reason for the prices of these stocks to continue going up is because of the companies buying back stock. These causes the Earnings Per Share to look attractive evening though the actual earnings are decreasing. If earnings are decreasing, they can only continue buying back shares for a limited time which. Mutual funds and hedge funds have been selling more than buying recently, so this should cause the market to go down when these buy backs slow down or stop. Once the previous lows made recently on the stock market get taken out, stocks will only have further to drop. This is when you will know its safe to short sell or buy an inverse ETF to profit from the downfall of the S&P and Dow jones.
Global economies are currently showing weakness, and this is dangerous for investors. China is still in a rut and the U.S looks like it could be following. Europe has negative rates and is printing like crazy to fight deflation. This will be what the U.S will most likely do as well if we start seeing deflationary symptoms pop up again. This is a reason why gold should be a strong buy, the fundamentals for gold are strong, and it would appear an uptrend has start in the gold market. There has been a shift with money flowing into the gold sectors at a very fast pace. Look at the mining shares, all mine have gone up 100-300 percent, and thats from me buying when i noticed the trends were starting. Right now, gold is having a pull back, which is why I am making this blog, to hopefully convince people to decide to get into gold/silver and possibly mining shares as well. Gold is a currency, while mining shares are an investment, and have more risk but even more reward.
If global economies are weakening, we can expect oil to go down lower. Oil is currently at 50, and it can go up still, but I believe this rally is fake. They have shipping large amounts of oil to china to be stored, which takes the concern away from U.S storages being almost full. If U.S storages were to be completely full, imagine how fast the price of oil would drop. Oil is being produced faster then consumed, and thats what spells disaster for the oil prices. This trend has to change before oil can make a bottom. The dollar could get weaker though preventing oil from breaking its low around the 26.50 range. If the dollar gets weaker though, it would create a higher gold price. If you look at gold and the dollar, you can see how one goes up and the other goes down. My thoughts are its more profitable to short the dollar by buying gold then to short oil, and most likely a lot safer. Oil is something I will be investing in when I notice the trends changing for supply and demand.
Real estate value could decline, and most likely will, but this will be a buying opportunity for anyone who is a POSITIVE cash flow investor. Chances are any strong deflation in the economy will be tackled with inflation from helicopter money. I would not buy and hold to flip. My suggestions for anyone who is in mutual funds should sell right away, the risk to reward is terrible. I would also consider holding cash for upcoming opportunities, but Id keep a good position in gold to profit. U.S treasury bonds will most likely go up as a rush of money flies to what people believe is a safe haven, but I would not trust this investment long term. I hope you all take action to profit and be in a position to acquire any opportunities that come up in the future years. We could be seeing something similar to the great depression, but we will see currencies destroyed trying to fight this if this happens, and this is what I believe will be the big crash, and these are my opinions of what asset classes will do.
Tuesday, 19 January 2016
Fed rate hike coming up
It is september 20th and we are getting closer to find out if there will be a rate hike or not. My belief is there will be no rate hike but I have a plan for my own portfolio if they do. This year I have been purchasing Gold and Silver mining shares, with the majority of them purchased in the first 4 months of the year. I have seen great returns of around 200% to this day. The problem is if there is a rate hike, that could damage my portfolio greatly or even wipe it out if it creates the current bull market in gold to turn out to be a bear market rally, which is still possible at this time. My plan if this happens is to sell all my mining shares, which I am in 100% for my positions in the market, so I can have all cash and buy back at a later date or short the market. If gold breaks the support level it currently is close to, I will be thinking about selling and buying back at a discount. If the rate hike happens, I will be most likely taking that cash to short this market assuming gold goes down with the market, which it would appear is likely to happen judging by the other week when the fed mentioned hiking rates and it dropped the stock market 400 points, and gold and oil went down for that ride as well. The stock market does show signs for a top at the moment, and when it falls, it will fall fast I assume just as it did the first time they hiked rates. Volatility will be a good play if this happens.
This is how I see the market, and how I plan on playing it. It will be an interesting two days to see what happens with all of the markets. I'm excited to watch, the markets are going to explode one way or another. Thanks for reading.
This is how I see the market, and how I plan on playing it. It will be an interesting two days to see what happens with all of the markets. I'm excited to watch, the markets are going to explode one way or another. Thanks for reading.
2016 and its opportunities
I am starting to believe we may be entering a recession sooner than I had thought. I was believing we would see a recession by the end of this year, or early 2017 but We may be entering a recession right now as some indicators are showing. If we see another interest rate hike from the federal reserve, I believe the dow jones index could drop to 14,000 this year, with oil going down to 20-25, but we are not that far as we currently are at 28.5. This will be an excellent opportunity to make a 50% -100% move when it hits its bottom. The opportunity to make tremendous gains in gold and silver looks like its appearing now as well, as companys producing those metals are dropping like a rock, down 10% on average today alone. I expect oil, metals and stocks will continue to fall until you see the federal reserve print more money (QE4) or them reverse the interest rate hikes. If they don't do one of those two things, we will be entering a great deflationary period that could be worse then then great depression. We are on year 7 since the last recession, and recessions occur every 2-9 years. What bullets do we have when we enter the next recession? They will have to print more money, and that will create our opportunity for tremendous gains in both oil, and precious metals. I have been investing in precious metals myself, but with these deflationary forces we have coming, I am starting to put new investments into the U.S dollar most likely, since my canadian currency is going to continue to fall with oil prices, and holding a cash position will put me in a great spot for any coming opportunities.
Click here to see some charts from Mike Maloney, that point to exactly what I'm saying here.
Click here to see some charts from Mike Maloney, that point to exactly what I'm saying here.
Thursday, 7 January 2016
2016 predictions and how to prosper from them
The future of the global markets is volatile. This past week, china's stock market has dropped 7% twice, causing a trading halt for the rest of the trading day. It took 29 minutes of trading to hit this mark today. This caused the dow futures to hit a low of 16,400 roughly, going down about 2.5%, which is about 500 points from 16,900 its previous close. At opening, the bids took the price up a bit higher, and it closed at 16,500. With some countries such as China, and Canada in a recession, you can expect this to cause a chain effect that will drag the U.S into a recession to. Knowing all this, what can we do to stay safe? Americas stock market is most likely to be dragged down along with the rest of the global stock markets, so you don't to be caught in them until valuations of the company's become an excellent opportunity. How do I know that stock prices are going down? Well one reason is the fed is raising interest rates, which slows growth, inflation, and is a measurement used to prevent creating bubbles if certain markets get to hot. We already have low growth. Inflation can be seen in certain places on the economy, such as the stock market, real estate, and food. The federal reserve says inflation is low though, so we can expect them to try to fight that. Since they stopped QE, which is another name for printing money, and interest rates are going up, slowing any growth that we currently have, and a lot of country's are starting to go into recession, this is all deflationary. Baby boomer's also spend less during retirement, which is deflationary and them all pulling money out of their pensions and 401k's in waves, which just started a couple of years ago, will not help the stock market go up either. The stock market has not done anything really in the past 15 years. The risk to reward for anyone in a mutual fund has risk outweighing the reward big time. Dow 10,000 is alot more likely then dow 20,000 unless more money is created which may cause people to lose faith in the dollar if they continue to do that, which will lead to high inflation. The real estate market is going to go down with higher interest rates. Speaking of oil, in my city, a house that sold for 760k just sold for 1.09m after 3.5 years, which is 330k rise, which is pretty much a 45 percent increase. Risk outweighs the reward on that one for sure. Canada's real estate market is a bit too hot for my liking. Positive cash flowing real estate is good still though. Oil still has a bit to go down since we are in a deflationary period. It could go as low as 10 a barrel but I think 20 dollars a barrel is a great opportunity still. So what I think is the place to be is in two things. The american dollar, or silver and gold. The dollar will get stronger as people run to it in economic uncertainty. Silver could go down to 7-8 dollars U.S which is about a 50 percent drop from the price it currently is but at that price, the premiums you pay will be higher than the current price you see today. That is what happened in during the crisis, as silver went down in price, you were still paying 20-30 dollars for silver since the supply was no where to be found. Since the price of silver has already crashed about 70 percent, it has started to slow down production but demand has been continuing to grow. If prices crash to 7-8 dollars, companies are going under, production will crash, and anyone who owns shares of company's that can survive this period, and physical silver will be getting ready to watch their value go up dramatically. I do not know if the ETF SLV will survive though, so I would rather pay a premium to insure myself to have it in my possession. My prediction is silver and gold bottoms in 2016, global recession hits before second quarter of 2017, maybe sooner, and the dollar hits new highs. I believe the stock market will end lower then it started, but I do not know how low it will go. It could make a new high but I'd bet against that by owning silver. I believe we are due for another crash and my guess is something happens after U.S elections. They always push the problem to the next person so they can deal with it. Janet yellen will be cleaning up Bernakes mess and I would assume its after elections if they can hold everything together till then. Why do I feel so bearish to the global economy? The problems that caused the 2008 crisis were never fixed. They just printed money, bailed out corporations, and pushed the problem into the future. It will be interesting to see how the future plays out, Im not even sure if interest rates can continue to rise. The government can't afford its debt if rates start to rise. I could see negative interest rates appear in america, though I would be surprised though to see that. I have learned to expect the unexpected though when it comes to this corrupted system.
Thank you for reading, and I hope you all take action to buy silver and gold, as well as silver and gold mining shares. Add a bit of the US dollar in your portfolio to make it a bit less volatile. The bottoms are coming in this year, if we have not already reached them.
US dollar value:UP
US stocks: down
Silver: down then up.
china: down. Bear ETF
Cash position is good to hold for up coming opportunity
Any money printing or lower interest rates could change these predictions for 2016
Thank you for reading, and I hope you all take action to buy silver and gold, as well as silver and gold mining shares. Add a bit of the US dollar in your portfolio to make it a bit less volatile. The bottoms are coming in this year, if we have not already reached them.
US dollar value:UP
US stocks: down
Silver: down then up.
china: down. Bear ETF
Cash position is good to hold for up coming opportunity
Any money printing or lower interest rates could change these predictions for 2016
Tuesday, 10 November 2015
Blog list
Hey everyone, We decided to make a list of all our blogs put into one place so you can look at all the tittles and pick out which ones you would like to read. Hopefully a few will interest you. We hope you enjoy what you read, and can learn something for whatever it is you choose to read. Thanks for the support!
This is our first blog, which is just a introduction. If you'd like to know a bit about us, check it out.
This blog is written a bout a few people that were average people or had nothing to their name, and turned it into a fortune.
These two blogs give a few idea's of how you can increase your income, in a way that could be a lower tax bracket then what your currently in. These work in any city, especially expensive city's such as vancouver.
Here is a list of some blogs that you can get a bit educated on a topic of your choice, to learn how you can increase your income, and learn how to start investing.
Here are two examples of how to make cashflow in two different asset class's.
This blog will open your mind to prepare you for a glimpse of the future
If you own mutual funds, give this a read for sure. It could be very rewarding if you learn a bit about mutual funds and decide to take action
These three blogs will open your mind on becoming successful. It isn't what you do but how you do it, and why you do it. We give a few examples of vehicles you can use to get to the level of success you want, but ultimately, its your why that pushes you be successful at whatever it is that your doing. This is where you should start if you do not know the secrets to succeeding at anything you want to succeed at in life.
The first two blogs are reviews on a book and a teacher, that educate you on the stock market. The book is a great read. The last blog is a teach on financial education. He is my favourite person to learn from.
This is a little story about the progress and past history on our journey. Give it a read.
Here are the last of our blogs.
I hope you have found some that sparked your interest, and you enjoyed. Feel free to follow us on twitter, facebook, and you can even add my facebook account personally. Thank you for reading.
The face to the name
Sunday, 1 November 2015
Grow your Income by opening your mind
Hey everyone, welcome to another blog from My Journey To The millions! Today's blog, we will talk about growing your income. You have to open your mind to get to the next level financially and you must push past that fear of losing!
If you want to grow your income, you must open your mind on ways to make income. You have to be willing to take risks with your money. You can't looking at your only source of income coming from selling your time. You can only get so far by asking for raises. You can't go spend more than you earn, and you cant be scared to lose all that you've saved. Knowledge is more important than money, so don't be scared to spend time and money on your education. If you know how the process of making a lot of money, you can easily repeat it if you lose all your money. If you have a lot of money though and you lose that, without the knowledge of how to regain it, your lost. That cancels out winning the lottery as a way to grow your income. The person who is to scared to take a chance on an investment, other than a 2 percent guaranteed investment, or a mutual fund will not get ahead but neither will the person who throws their money in an investment without any knowledge on it. One thing I believe is that to get more in life, you must give more in life. I daily donate a portion of my income. I told someone that recently and they thought I was crazy, they said think about how much that is in the long run. Those who fear losing money will not get ahead which is why I give daily. So if you truly do want to grow your income, your going to have to get your financial statement in order. Your going to need to use a portion of your income to power build your asset column with positive cash flowing assets. You can invest in a portion of income towards capital appreciation assets but those don't increase your monthly income. Look for a service you can provide to others part time to grow an extra income on the side. Perhaps a small part time business, whether it be starting in your garage, or on your computer over the internet. Your goal is to slowly increase that income until it reach's or surpass's your income from your job. Once this happens, I would suggest you you quit your day time job and work and growing your cash flowing asset column to the next level. Why do I say that? I've heard people say that if they had $20,000 dollars residual income coming in from investments, they would still work for money to make 200 a day. Why would you go to work and spend your valuable time making $200 a day when you know how to make $20,000 a month without working? What's more likely, you doubling your income from your job to $400 daily, or you repeating the process you have already done to create another $20,000 residual income to total $40,000 monthly income. If you know how to accomplish that first step, and you have more time to focus on doing it over again, how long do you think it will take you to double your passive income? Stop thinking small and picturing 30 dollars as an hour of a time. Think big.
Thanks for reading! Feel free to take a look at more of our blogs by clicking below!
Friday, 30 October 2015
My journey to the millions
As a young kid, I hated school. I felt lost from having to wake up to go to school which I did not feel a need to go since I didn't understand what joy there is from going to school for 12 years, just so I could graduate to get a job until I'm 65. That thought didn't excite me at all, and it made me hate school. Once I hit high school, I dropped out instantly on the first day and didn't make it back until 2 years from that day. I started at an alternative school, and shortly after, I started buying and selling random items such as bikes, games, gaming systems, etc to make a profit. To boost my money to play around with, I got a job at Mcdonalds. I didn't like the job, but I did like the people I worked with. I had started to finally find meaning in life as I watched my small part time business rack in more profits as I had more money to play with. After about 9 months, I had to quit my job to focus on my small business that was earning more income than the job by twice as much at some periods of time. I slowly started to get bored of this business and was introduced to multi level marketing. I joined instantly and started to learn, and grow as a person. My business did very terrible, I lasted 3 months before I quit but this opportunity was what made me realize is I am meant to be an entrepreneur. I used the time after this to start studying investments such as commodities, and the economy. I worked on learning how to position myself with the profits I made from my small business that I gave up to start to pursue something new, and what I started with was buying gold and silver. I bought the majority silver at $25 an oz, which hurt me since it is currently at $21 today which is 3 years later roughly. For my second investment, I wanted to get in the stock market but I was only 18 and had to be 19 to open an account. I found a trusted person to open an account that I could have control over, and I bought a solar panel company, stock symbol YGE for 3.50 a share and sold it at 5.75 a share three months later. At the time, I had no idea what I was doing, but I got pretty lucky with this trade. I would had held on to this but I transferred the funds into my name as I was finally 19, and my stock broker took over from there. My stock broker has made a few killing stock trades in the past couple years. He focus's on penny stocks, which most are garbage in my opinion, but I believe my first trade was AIX.V and I flipped it from 3.5 to 5.5 cents. Another great trade was DIDG at 5.5 cents, sold at 9.9 cents. That was a nice trade, and still is in my top two trades to date. My next venture was starting my own small junk clean up business. I bought myself a truck and starting using people I know in the construction business as leverage to find work. I was renting a Dump trailer for a monthly fee and made a few decent jobs that were nice profit. This came to an end when I lost my drivers license from having to many tickets as a new driver. I wasn't the brightest kid growing up. I gave up on that business and started to focus again on investments. I found an investment in a small construction business that was offering around 4x my investment to fund them. It was initially going to take about a year to receive my return, it ended up taking a period of two years and the returned amount 3x my investment, since it was not a locked in number. Still a great investment though of course. One thing I also tried was binary options. Short story, I lost all my funding I put in within the first day. After this I continued to look for ways to get rich and make it big. I decided to do day trading, since I loved the stock market already so much. I did make a few good trades, including one that I made a 50% return on in a matter of 4 minutes, but I parked all my money into a pump and dump failure, when I thought it was a great discount to buy. I lost it all. This was a big set back in my investing since my silver was at an all time low at this point and I lost all the money I put in the pump and dump, and was using my other investment income to live off.
I have made many mistakes, and have made a few really good investments. Today, I look back and go what the hell was I thinking. I have been focusing hugely on education and if I new what I knew back when I was 17, I probably would have made it by now. What I am focusing on now is using other peoples money and other peoples time to create income now. My investments now are being aimed for cash flowing assets. I am now focusing my money on cash flowing stocks while I get educated in the real estate market to learn how to make money there. I have made enough mistakes to instantly jump into any more get rich quick schemes, so now I take the time to get educated on the subject before throwing money at it. One investment right now I have is using other peoples money, and other peoples time to create a return of roughly 30% percent minimum (could be as high as 100%) to create money that I can use to purchase some cash flowing assets with. All I want to focus on is growing my monthly cash flow income from investments to $3000-5000 so I can spend my time however and continue growing my investments with that money. I have learned that true wealth is time and freedom. It does not matter what my net worth is from these assets, all that matters is I continue to grow my assets and have the freedom to spend my time however I would like. I am now 21 and the goal is to be rich by the age of 25, with 10,000 cash flow income coming in every month from assets.
I have made many mistakes, and have made a few really good investments. Today, I look back and go what the hell was I thinking. I have been focusing hugely on education and if I new what I knew back when I was 17, I probably would have made it by now. What I am focusing on now is using other peoples money and other peoples time to create income now. My investments now are being aimed for cash flowing assets. I am now focusing my money on cash flowing stocks while I get educated in the real estate market to learn how to make money there. I have made enough mistakes to instantly jump into any more get rich quick schemes, so now I take the time to get educated on the subject before throwing money at it. One investment right now I have is using other peoples money, and other peoples time to create a return of roughly 30% percent minimum (could be as high as 100%) to create money that I can use to purchase some cash flowing assets with. All I want to focus on is growing my monthly cash flow income from investments to $3000-5000 so I can spend my time however and continue growing my investments with that money. I have learned that true wealth is time and freedom. It does not matter what my net worth is from these assets, all that matters is I continue to grow my assets and have the freedom to spend my time however I would like. I am now 21 and the goal is to be rich by the age of 25, with 10,000 cash flow income coming in every month from assets.
Thanks for reading! Feel free to take a look at more of our blogs by clicking below!
Tuesday, 27 October 2015
How to build true wealth
Hey everyone, welcome to another blog from My Journey To The millions! Today's blog, We will be talking about creating wealth. We will be going through cash flowing assets and creating money to build time freedom. We hope to educate you more financially so you know the other options out there other than getting a job.
If you want to be truly wealthy, with time and money, your going to need to start building assets. The definition of an asset is something that puts money in your pocket. It does not matter what you choose to use to get to this goal, but I highly suggest you look to create cash flowing assets rather than assets you hope to go up in value. It makes so much more sense to get paid to take the risk while you wait for the appreciation of that asset. One example of an investment I am doing right now is using other peoples money and other peoples time to create a small amount of money that I plan on using to acquire a positive cash flowing stock from its dividend. I have high hopes for this stock, and I will be paid to take on the risk.
You too can do similar investments like this through wholesaling real estate and using the gains from it to buy cash flowing assets of your choice. The rich create money and have their money work for them. If you want to be truly rich, you must create money. You can do this by starting a business, and taking it to the stock market. When you sell a portion of your company, your creating money. Your like a bank, printing money out of thin air. You can do this by adding value to a property, or wholesaling real estate or doing rent to own real estate deals. You must open your mind so you can begin to see how you too can do this. It does not need to be just real estate.
So if you want to be truly rich, the two things you must do are learn to create your own money, and start acquiring cash flowing assets. These are the true secrets to building wealth. Wealth is Time and Freedom. Money gives you the freedom to do whatever you want, and Time is everything. Do not say time is money because it will be pretty sad if all the banks started writing checks for everyone and said your life is now mine, thank you. Time is everything.
If you want to be truly wealthy, with time and money, your going to need to start building assets. The definition of an asset is something that puts money in your pocket. It does not matter what you choose to use to get to this goal, but I highly suggest you look to create cash flowing assets rather than assets you hope to go up in value. It makes so much more sense to get paid to take the risk while you wait for the appreciation of that asset. One example of an investment I am doing right now is using other peoples money and other peoples time to create a small amount of money that I plan on using to acquire a positive cash flowing stock from its dividend. I have high hopes for this stock, and I will be paid to take on the risk.
You too can do similar investments like this through wholesaling real estate and using the gains from it to buy cash flowing assets of your choice. The rich create money and have their money work for them. If you want to be truly rich, you must create money. You can do this by starting a business, and taking it to the stock market. When you sell a portion of your company, your creating money. Your like a bank, printing money out of thin air. You can do this by adding value to a property, or wholesaling real estate or doing rent to own real estate deals. You must open your mind so you can begin to see how you too can do this. It does not need to be just real estate.
So if you want to be truly rich, the two things you must do are learn to create your own money, and start acquiring cash flowing assets. These are the true secrets to building wealth. Wealth is Time and Freedom. Money gives you the freedom to do whatever you want, and Time is everything. Do not say time is money because it will be pretty sad if all the banks started writing checks for everyone and said your life is now mine, thank you. Time is everything.
Thanks for reading! Feel free to take a look at more of our blogs by clicking below!
Friday, 23 October 2015
good debt vs bad debt
Hey everyone, welcome to another blog from My Journey To The millions! Today's blog, we will be teaching the difference about good debt and bad debt. We hope to educate you more to help you benefit from debt with this knowledge.
If you have never heard of the term good debt, you may be wondering how can debt be good? We are generally taught to stay away from debt, pay off your credit cards, and pay off your mortgage as fast as possible. Its a good strategy for the average person of course, but for those of you who want to take your financial IQ to the next level, and use OPM ( other peoples money) like the 1% do, than your going to need to get educated. First of all, lets get the basics over with. Good debt is something that puts money in your pocket. Bad debt is something that takes money out of your pocket.Lets say you can borrow $1000 at 5% and use it to make 6%, that is good debt that puts positive income in your pocket. This is normally done with real estate. An investor can purchase a $170,000 dollar house, for a mortgage payment of $700 monthly (at 3%), and the seller is willing to do seller financing for the 10 percent down payment, with lets say a payment for $400 a month. Expenses for tax's and insurance cost $250. In total, all expenses are $1,350. If this house rents at $1,700, it cash flows positive income of $350 a month. That's not bad for using 100% other peoples money. This is what an infinite return comes from. These are just practice numbers though, for a real example, you can check a real life example, in the expensive real estate of Canada, here: Cashflowing property example. This is a cash flowing asset. This same example would be considered a liability if the rent was only $1,300 a month causing your income to be negative $50 a month. That would be an example of bad debt. Same with buying a T.V on your visa. That is bad debt, unless your renting it out, and the rent income is higher than your monthly payment for it.
Lets use another example. Lets say you manage to use your credit cards to buy shares of a company, or you take a mortgage from the equity of your house, or whatever the case is. Does that make it good debt or bad debt? If you borrow the money at 4% and the stock pays a dividend at 5%, then this would be good debt. If the stock shares you own do not pay a dividend, it is a liability. It can only become an asset the second you sell it for more than you bought it for, and the cost of borrowing the money. This is similar to gambling. You do not know 100% if it will go up in value. Until you sell it, you still pay the monthly payment for borrowing the money, and still have the expense for holding it. I do not recommend getting into stocks that way though of course. This is what most people in the lower mainland in british columbia, canada are doing with Real estate. They are buying property for the hopes of capital gains, which is crazy for the average person. The educated business person with a good plan I'm sure can do it well and lower their risk. People buying for capital gains, are gamblers for the most part.
Good debt can also be used to create an asset, such as a business. You will need to be very educated and have a really good strategy and team, to pursue an investor to give you money though. Lets say you have a wonderful business plan of producing this product, which doesn't matter to much what the product is. You have a team that has experience in successful business and they know how to market, increase sales, how to take a company public on the stock exchange, and all that other good stuff you need for a company to succeed. You take your business plan to an investor asking for $250,000 with a return of whatever amount you agree on, you show them your team, they are happy and agree to do financing with you. Awesome, you now have the debt. Now its your turn to make this debt good debt or bad debt. In a few years, your business is doing extremely well, you pay off the debt, and the agreement for borrowing the debt, and now you , and your partners are left with a dividend paying you from the company an agreed upon amount. This is now good debt. This example is very difficult to do, considering most company's fail in there first 5 years. If you are educated though, this is the highest return investment you can build though of course. Another way you can use debt to become a cash flowing asset is by using OPM to invest in oil wells! This is also a high risk investment, which you will need to be highly financially educated to do but it can pay off big as well.
I am not saying their is anything wrong with that beautiful new car that costs you $500 a month roughly. What I am saying is consider buying an asset with debt first so you can have your asset pay your bad debt. A $500 dollar rental property can pay off your car payments.The best thing is when your car is paid for in a few years, your asset is still bringing income in your pocket, and might even have equity in it you can use to purchase your next investment.
Thanks for reading! Feel free to take a look at more of our blogs by clicking below!
Tuesday, 20 October 2015
Cash flowing Stock option trade example
Hey everyone, welcome to another blog from My Journey To The millions! Today's blog will be an example of a current trade I am placing on a demo account that is cash flowing from a dividend, as well as lasts months example of a cashflowing stock option trade.
Update: The first months cashflow from stock options was made by risking money to sell an option for instant cash. If you do end up having to buy the stock, you can continue renting out these stocks by selling options for monthly cashflow. The second months strategy for cashflow is by buying a high dividend stock and paying for a safety net to reduce risk. Of course the value can go up and down but the cash flow is what is important. Just wanted to provide a bit more information to help others understand how its cashflow.
Update: The trade I used on GORO was terrible. I exercised my option, limited my loss which is good atleast, but it was a big loser. To make up for a bit of the loss, I bought call options of apple at 115 for I believe 5 dollars a share, So I now have the option to buy apple at that price and It is currently in a positive position at the moment. I am going sell put options for SLV to hopefully gain some percentage back. SLV is looking like its getting ready to hit its bottom or break through it perhaps, so I am waiting to decide when to sell the option depending if it breaks its support. A better, cheaper way to had profit on GORO could had been to buy call options which would have lost all of its value, but perhaps could had saved money. I will not be buying one month contracts anymore, 2-3 months will be the minimum I will buy for stock options after this lesson.
Thanks for reading! Feel free to take a look at more of our blogs by clicking below!
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