Economics & GeoPolitics Charts

Economics and Geopolitics play a role in every investment choice

  • And are especially important to understand in the areas where I spend most of my research time
    • Emerging markets and
    • Commodities
  • I chose to feature the etf below because Vanguard $VT Total World Stock is a one-stop shop, set it and forget it investment for you lazy types, lol
  • It invests in basically everything non-alternative, everywhere
  • And the fees are LOW!

Featured Chart

United States of America

  • There are tons of choices for tracking the S&P500
  • Choose etfs, not funds… fees make the difference here, as always, and tracking the S&P should not require active management
  • For tracking the S&P500 some popular choices include $SPY and $VTI
  • Other interesting options that represent the US economy include etfs that track long-term treasuries, a play on interest rates
  • Popular choices here include $TLT, $EDV, $VGLT, and $RINF
  • Since I’m a #4IR Global Macro investor, I tend to focus more on the “FANG” stocks
  • Those are Facebook $FB, Amazon $AMZN, Netflix $NFLX, and Google $GOOG (Alphabet $GOOGL)
  • I DO NOT like Netflix… personally, I have had poor customer service, bad experiences, multiple times
  • And, I don’t think they’re doing something that cannot be replicated… time will tell on that one
  • My top choice for US stocks, in prep for #4IR, is Amazon $AMZN… I sold my Amazon holdings at a 16% gain after only holding them for a week, and then moved the money into gold… glad I did!!!
  • But I plan to own WAY MORE Amazon stock… I’m just waiting for another 2008/2009
  • Some people use Apple as a “substitute” for $SPY because $AAPL represents such a large part of the market’s movement, i.e. MASSIVE market-cap

Europe

  • Europe has been having a hard time of late… especially with the Migrant Crisis and other geopolitical dramas
  • BREXIT!
  • No one REALLY knows what the world will look like post-Brexit
  • European banks = LOST MONEY this year… but what about next year or the next?
  • I think financial companies in general are facing disruption, and hopefully innovation
  • Look out for MAX negative sentiment for European banking… that’ll be our entry point,
  • Unless we can find better options, of course…

Asia/Pacific

  • Asia/Pacific usually means Japan
  • I love Japanese people, and the culture, but don’t want to park my money there
  • Why? Because of massive demographic issues
  • Japan sells more adult diapers than child diapers… it’s a shrinking economy, not growing
  • Look to emerging market Asia for growth instead
  • That said, 2016 is the year of the YEN… it’s been a safety currency for many traders and investors