The SUCCESS: Sell it all if you want to lose your capital.

The SUCCESS of any highly profitable business to achieve high profits is based on BUYING CHEAP.

The SUCCESS: Sell ​​it all if you want to lose your capital or read this short report. October 2022 promises high-level volatility. In the coming weeks we will receive the publication of the results (earnings) of the companies listed on the American benchmark indices.

It is neither good nor bad, the market will digest the FACTS/results versus the estimates. The purchase made for the next 3-5 years will be more attractive in each market fall.

If you accept a suggestion, do not go into a state of apnea, because the current volatility brings us closer to the economy’s recovery in the coming months.

Yesterday, Thursday, October 13, the annual rate of the CPI for September 2022 was published in the US and it was 8.2%, 1 tenth lower than that of August, which was good data.

The sensitivity of the market -short term- and erratic, interpreted it as “the end of the world” and the Dow Jones plummeted to -364.65 in just 120 minutes the Dow Jones returned to recover from the fall and ended up rising to its closing of 1,140 points.

Movement graph of the session of Thursday, October 13.

The market sentiment is at levels of 60.9% bearish, that is, out of every 10 investors, 6 think that the market will continue to fall.

Since 1990, all measures taken at levels of 60.9%, 12 months after this value (60.9%), the stock market indices had an average rise of +33%.

The SUCCESS: Crises are a matter of PATIENCE and FOCUS.

Lower Energy Prices

We have experienced a vertiginous drop in the price of crude oil that went from $120 in June’22 to $93 in December’22 futures ( -22% ).

The price of gasoline 95 has gone from costing €2,156 to €1,758 ( -18.55% ), and the price of the Megawatt/h that we paid in August 2022 to €424.88 and today the Megawatt price is quoted at €163.92 ( -61.41% ).

Financial measures need time to integrate progressively into the economy.

It is not possible to have a RECESSION when we have a US unemployment rate of 3.5%, which is the same as saying full employment. This is economics FIRST.

Recessions are always accompanied by high unemployment rates since these are the ones that cause a sharp drop in consumption.

The rise in interest rates is causing a slowdown in some economic sectors that are indexed to financing such as the purchase of houses and cars, the rest is reabsorbed into the economy.

Is Fixed Income a good profitability alternative?

I present to you a sample of the evolution – unknown to many – of global fixed income (government, corporate, credit) during 2022.

In actuality, the data speaks for itself.


If the Global Fixed Income accumulates negatives between -19.68 % and -26.51%, as you can see in the table below.

During the last 12 months, all equity and fixed-income financial assets have accumulated 2-digit losses (between -6% and -40%).

If the technological reference index NASDAQ COMPOSITE accumulates negatives of -32.74% as you can see in the graph below.

If the reference industrial index SP500 accumulates negatives of -23.49% as you can see in the graph below.

What can we do with our investments?

The SUCCESS of any highly profitable business to achieve high profits is based on BUYING CHEAP.
You have in front of you, an idyllic scenario for investment-oriented in the next cycle (3-10 years), great challenges are presented in telecommunications, 5G connectivity, artificial intelligence, and by international regulations, among others, the energy transition in 2030.

Do you agree with me?

The earth has a rotational speed of 107,280 Km/h although as I write these lines I am not able to feel it and probably the sun will continue to rise in the coming years from the East.

However, it will be difficult to find large companies at bargain prices -like the current ones- in the coming years.

Want to know about Do you really want to buy a house?(Click Now)


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button