The changing world order, early retirement, and a peek into retail investors' portfolio

Pessimists sound smart. Optimists make money.

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What’s up Graham, it’s guys here.

It was a tough week in the market with the S&P 500 officially entering the correction territory - down more than 10% from the ATH set in early January. It doesn’t seem that the worst is over, with Bank of America predicting that there is a 35% chance that the S&P 500 could fall into a bear market. Adding to this, inflation rose to 7.9% in February, the highest in the last 40 years!

But as you know, here we aren’t too concerned about how the market behaves in the short term and are more focused on the long-term investing strategies. So let’s jump right into a quick recap of this week’s videos.

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How to Retire in 10 years

Let’s break down some assumptions right away - Retirement is not something that you can only have when are you in your 60s or 70s. Also, retirement is not just about just sitting around sipping a Piña colada on a Hawaii beach (Though it totally can be, if that’s your thing) - For me, it’s about the freedom to be able to make a conscious choice, each and every day, in terms of how I am going to spend my time! Imagine how cool it would be if you can wake up every single day and decide to do what excites you.

So in this video, I am giving you 7 tips on how you can build an investment portfolio that can cover your daily expenses in 10 years even if you are starting with $0 right now.

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The Changing World Order

Throughout the last week, there has been a new topic that’s gaining a lot of attention. A video posted by Ray Dalio - “Principles for Dealing with the Changing World Order” has amassed almost 5 Million views in just two weeks. It’s a 43-minute presentation about the impending downfall of every major economy and how these cycles repeat themselves approximately every 100 years. Throughout history, there is a constantly revolving changing world older between the leading economy and the rising economy, with both fighting to become the economic superpower. The winner decides The Reserve Currency.

So, when I did some research independent from this, parts of it begin to make a lot of sense. I will give you my thoughts on where the US dollar stands, whether its going to lose its reserve currency status to the Chinese Yuan and where Crypto would come in between all of this!

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Bleak Outlook for Retail Investors

I came across this interesting study that highlighted that during a 20-year timeframe where REITs, Oil, and the S&P-500 averaged an almost 10% return every year, the retail investor barely managed to out-perform inflation with a 2.5% return. The theory here is that most retail investors were prone to jumping in at the very peak of the hype cycle (*cough* Meme Stocks *cough*) and selling as soon as they lost money, and repeating the exact same process over and over again!

The retail crowd has been extremely active in buying the recent dip whereas Hedge funds are reducing their exposure to the equity market following the Ukraine invasion. So in this video, I explore who might be right in the long term - and should you be buying the dip?

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So that’s it for my Sunday round-up. For the new folks here, in this newsletter I give a quick recap of whatever you may have missed over the week on Sunday, and on Wednesday, I will be doing a deep-dive article on one of these topics.

See you next week with another bunch of exciting videos!

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