I see many beginners posting that they’re new to investing and don’t know where to start. 🤔 As someone who was in a similar situation just a few months ago and learned, here are the 4 ETF types (& ETFs) that are popular among long term investors 😃 : 1) S&P 500: US: $VOO / $SPY / $SPLG Canadian: $VFV / $ZSP / $TPU 2) GROWTH / TECH: US: $QQQ / $VUG / $VGT / $SCHG Canadian: $QQC / $HXQ / $TEC / $ZUQ 3) DIVIDENDS: US: $SCHD / $VYM / $DGRO Canadian: $VDY / $XEI 4) ALL IN ONE / BASKET / Global Exposure: US: $VT / $AVGE Canadian: $ZEQT / $XEQT / $TGRO / $VEQT / $ZGQ I noticed many people following this type of a basic / uncomplicated portfolio and are doing really well for themselves 🔥 For % allocation, you can divide evenly among the ETF categories or allocate a higher % based on your preferences. Just DCA regularly and you should be good. 😎 Some people even just put it all into an all in one etf like $XEQT. This is also a good approach - it is much simpler and it works. Ultimately, it comes to whatever you prefer 🙂 Oh and yea, there are overlaps, but I don’t think there is anything wrong in that though - it would just count as doubling down on good things. 💯 I’m sharing with you all what helped me, but don’t forget to do your own research too! 🙏🏼 read more
Cathie Wood's ARK disclosed a $765 million position in SpaceX, bringing the private space company to nearly 5% of the portfolio. This comes as Wood cuts Teradyne by 48%, banking a 347% gain on the semiconductor testing stock. Visit Wood's profile to see her full portfolio and recent trades this last quarter from her 13F filing.
I dare say this will be my best deep dive EVER! A couple of days ago I wrote about a very special research project I’m running to dig through the 13F filings of some of the world’s best small-cap growth focused hedge funds to create a map of where the smartest capital is flowing right now. I wanted to get you guys excited with a quick update on the progress before the full article drop on Friday. So far I’ve managed to: - log all activity from 11 specialist funds, - Track positions in a total of 754 securities - Reviewed all Q1 vs Q2 2026 share counts Leading me to discover: - 227 brand new positions initiated - 214 positions completely exited - 90 companies held by 3+ specialist managers simultaneously - 27 companies where 2+ managers independently opened new positions the same quarter This will be an absolute gold mine for all of you to dig through and review. I found 5-way ownership clusters. Triple new-entry signals where three managers all discovered the same company in the same quarter. One biotech position where the world’s most respected biotech fund has $2.1 billion invested and is STILL buying more. I’m now in the final stages of my research applying fundamentals and technical analysis to the shortlist of companies where clusters of smart money is deployed. After which I’ll be creating my own list of positions to invest in. This full research will be dropping on Friday, I invite you to follow my account so you don’t miss it. And for the time being I’ll leave you with 2 small teasers of companies on the list, that few of us might have heard of.. just look at the YTD charts and you’ll understand who has their pulse on the markets and why we are interested to follow in their footsteps. Check out $ARXS$RVMD I also left a summary table of all the hedge funds I’m tracking in this research to show you the scale of work. Hoping you’ll all find value in the work. read more
Atritzia $ATZAF / $ATZ Is this an early break in yet another retailer on the ropes? 😂🤣 Or is this long-term trend intact? KTS #29 is your friend. This is the Way! 🏄♀️🌊🏄♂️🌊🏄🌊
Here’s why 👇 I’m bullish on small-cap companies over the long term, especially as AI continues to drive innovation and growth across smaller businesses. $SCHA gives me broad exposure to U.S. small-cap stocks without having to pick individual winners. I’m 28, so I’m playing the long game. Adding shares consistently, reinvesting, and letting compounding do the heavy lifting. Slowly building this Roth one contribution at a time. 🚀 What do you think of $SCHA in a Roth? $SCHA$VOO #RothIRA #Investing #Stocksread more
I am currently 47 years old. Unfortunately in that time frame I have lost a lot of family members. Some (most) were accidents, some to age, some to cancer, and one to suicide. That’s 11 deaths total. Only 1 person out of 11 had a will. When you are grieving the last thing you want to do is close an estate up. It’s even harder if nothing has been prepared in advance. After the initial shock of the death settles (the phase where everyone is usually nice), greed comes through in a most alarming manner. I’ve watched people turn into monsters. Make sure you have a will!!!! or people will fight.  I know most people hate thinking about their death or their spouses death but honestly it’s just a fact of life. I’ve personally been the executor of 2 estates now. This is my advice: 1. If your young get life insurance. If you’re retired it’s not worth it. 2. Make sure you have a will. 3. Make sure you have a personal directive. 4. Make sure you have a power of attorney set up. 5. If your married make your spouse the beneficiary of your TFSA and RRSP(has to be done through the account not the will), they will roll into the spouses account without taxation. 6. If you’re married, and you own a house, make sure both names are on the title, joint tenant, NOT tenant in common. This activates right of survivorship on property and doesn’t have to go through the estate. 7. If you’re married, both people should have their name on all the vehicles, joint, otherwise it’s a headache after death. 8. Buy a file folding system. I have a plastic one that has a clasp and handle. 9. Put EVERYTHING in this file folder that would be needed if you died tomorrow. a) all land titles B) information on house insurance so it can either be eventually canceled or name changed over. C) your will (or the location of your will),  power of attorney, and personal directive D) the information for your car, car insurance, and registration on vehicles. E) information on life insurance. F) all current year papers needed for filing your taxes. Because the survivor will have to do it and will need that information. G) where your household bills are. ALL OF THEM, electricity, gas, Netflix, magazine, subscriptions everything you can think of that is in their name. Because you are going to have to cancel them. H) their credit card information where to contact to cancel the cards I) birth certificate, SIN numbers, marriage, license, etc. J) information on all your investments accounts, bank accounts, etc. K) anything else you can think of for your situation If you’re married, I’d have one box per person. When you die, the funeral home will issue many death certificates. And your lawyer will give you copies of the will. These will be needed to change over any accounts. Everything else goes through the estate which is taxed and the lawyers take their fees so I’d avoid this as much as possible especially if you’re married. This is why having property in both people‘s names is so important because it doesn’t have to go through probate. I am widowed now and I have my black file folder and my two remaining children know if something happens to me, all they have to do is grab the folder. Everything they need to take care of my estate will be located in this folder. At the beginning of every year, I open this file up and go through everything to make sure it’s up-to-date. If you are young and do not own much or can’t afford a will, you can draft one up but it must be handwritten to be classified as a legal document. You cannot type it out!! If you’re not worth much, everything will most likely be sold to pay your bills and cover your funeral expenses. But you can state who your executor will be in your handwritten will.  Disclaimer I’m not a lawyer or an accountant and this is not legal advice. Talk to a lawyer and talk to an accountant. Make sure everything is set up for you and your situation. These are situations that I personally ran into. Good luck Also I’ll add in. IF you have a lot of assets make an appointment with your accountant first. They will tell you how to properly set things up. Then take that information to your lawyer. read more
The other day @paulsantori commented on a post of mine talking about taxes and it got me thinking....How many times do we actually get taxed on the same money? I earn income → pay income tax. I buy a house → pay property tax every year. I buy something → pay sales tax. I take my family out for a meal -> more taxes I invest → potentially pay tax on dividends, interest or capital gains. I drive → pay taxes built into fuel. Buy a new car = taxed, buy a luxury car = taxed even more. It feels like the same dollar gets taxed over and over as it moves through the economy. Obviously, taxes pay for the services and infrastructure we all use. I’m not arguing that taxes shouldn’t exist. But it’s still pretty crazy when you stop and think about just how much of your income never actually makes it into your pocket or stays there.... Earn it. Taxed. Own it. Taxed. Spend it. Taxed. And then we wonder why building wealth takes so long. Rip to all those Etfs that I could've bought instead lol read more
Next Wednesday $NVDA reports, and the whole feed will be guessing the number. I do not guess numbers. I read where the institutional money is positioned going into the event, and right now that read is loud. Here is what my scanner sees. $NVDA is a skip. Not because the company is bad, but because the demand is not there. The volume is flat, no surge of fresh buying even though the stock trades a hundred million shares a day, that is noise, not accumulation. Its relative strength is mediocre, lagging real leaders like $GE , $LLY and $XOM . And the price is sliding below its weekly level into the report, not building up ahead of it. Think about what that means. If the big money expected a blowout, you would see them position early, and it would show up as accumulation and rising relative strength. Instead you see the opposite: no urgency, drifting price, and the headlines even note a well-known fund just cut its stake. The smart money is sitting on its hands in front of the one event that should matter most. That is a change of character for a name that used to be the undisputed leader. I am not calling the number, nobody can. But a leader that nobody is rushing to own before its own earnings is telling you something. A giant beat has to move a stock nobody was accumulating. A miss lands on zero support from buyers. Either way, I would rather read how the money is actually positioned than gamble on a headline. That is the whole edge. Not investment advice. 🐝
$GOOGL 🚀 The Gap Fill is Imminent and the Fundamentals are Roaring If you have been watching Alphabet (GOOGL) bleed a little over the past few sessions, it is easy to get shaken out. I think it is setting for the "Trampoline" Bottom Looking at the daily chart, $GOOGL is currently trading around $340.21. It has slipped below the 8-day EMA ($345.22) and the 50-day EMA ($351.30), but the real story is the gap fill: We are just a couple of points away from completely filling the historical gap in the $336–$338 zone. The price is still comfortably above the 200-day EMA ($324.32), confirming that the long-term bullish trend remains incredibly healthy. Once we tap that trampoline, the combination of a technical reset and these monstrous 2026 fundamentals should send $GOOGL right back toward its recent highs near $384.
Celsius is doing really well today, while ELF is holding strong despite an otherwise red day — and PLTR is holding up well too. 📈 It really just reinforces my approach: If you do your homework, trust your strategy, and don’t let yourself get influenced by unnecessary noise and short-term movements, you can go a long way. You don’t need to react to everything. Sometimes investing is simply about having patience and sticking to what you’ve researched and believe in. 💪 I’m staying the course. 🔥
I don’t trust any investing strategy I haven’t tested against my own panic. 😅 Turns out there’s science behind that instinct. Kahneman and Tversky found that losses hit us roughly twice as hard as equivalent gains feel good. So when the market drops and you feel like it’s the end of the world? That’s not drama, that’s your nervous system doing exactly what it’s wired to do. Here’s the part nobody tells you: the “perfect” portfolio on paper is worthless if you can’t actually hold it. I’ve watched people build beautifully optimized portfolios, then sell everything the second things got scary, locking in losses right before the recovery. The math was right. The human wasn’t ready. So now I ask a different question before investing in anything: not “what’s the highest return?” but “can I actually sleep at night holding this?” Your body answers that faster than any risk questionnaire. Tight chest, checking your phone every 20 minutes, that’s not weakness, that’s information. 🫀
Want to respond to @ronan's feedback yesterday (and the feedback in the comments) with my own post so my response doesn't get lost in the thread Will start my saying I hear the concerns and am taking them very seriously and this is something I take personal responsibility to fix. I really appreciate everyone taking the time to write out their thoughts and see a ton of passion from everyone in solving these issues. As @ronan mentioned, Blossom has always had a spark and uniqueness and it's our job to make sure that spark doesn't go away as we grow. Here's my summary of the top problems I'm hearing and my plans to fix them: 🤖 1. The rise in AI slop posts crowding quality content - This was the #1 problem raised across the comments and is one we're actively working on. We're following @jacobb's suggestion of an 'AI detection' feature with the ability to see less posts like this. This is set to go live in 3-4 weeks, will see if we can accelerate this 😢 2. Us vs them mentality, hostility especially to new creators - This one is a bit tricky as we don't want to overly police what people say. But there's one example someone gave of a new user being called a loser that are blatantly against our community guidelines of respecting one another. I think the same way we've built in spam/scam detection, we need to do the same for these kinds of comments so we can uphold these guidelines better 🏆 3. Too many milestone posts crowding out quality content - I think there is an important place on Blossom for this kind of content as the milestones are encouraging to other investors in their journey (including myself). I think the issue more so is the volume of them. Curious for folks feeling this issue whether they've tried clicking 'see less posts like this' as that should fix this issue. If not I'll investigate and perhaps not a lot of people know about this feature. I think #1 and #3 stem both stem from the feeling that quality content isn't being rewarded... let me think deeper about how to solve this problem more broadly as I definitely see this too and I don't think fixing AI slop will fully solve this. One commitment I have is to spend much more time connecting with and chatting with Blossom's creators, I want to solve this problem as much as you guys do. One good news is we recently hired our first product manager (who is a Blossom shareholder and creator) who will be fully dedicated to helping me solve this and together we'll have much more time to chat with your all and think about how to solve these problems. 🙏 Let's get Blossom back to the glory days of this community!read more
Jeff Bezos's Amazon made a massive new $1.2 billion bet on XE, an outsized move that instantly became more than a quarter of the entire portfolio. Visit Bezos's profile to see his full portfolio and recent trades this last quarter from his 13F filing.
I’ve been running a very boring and conservative Balanced portfolio with a variety of ETFs (Index, Factor & a bit of CC) for the last few years. 😴 Since markets have been strong the past few years it’s given me more than enough to cover our expenses. 🙌 But with the popularity of CC/High Yield ETFs and so many finfluencer videos to learn from I thought I’d check a few out and see if it makes sense to jump on the ‘yield train’ to take advantage of these big monthly pay days! Before pulling the trigger though I thought I’d run the theory through a few scenarios using @karyungtom Retirement Spending Calcultor to gauge the probability of my money lasting 30yrs. https://karyungtom.com/retirement-spending-calculator/ We can’t know future return paths but we can run various assumptions based on past market performance and other tools like a Monte Carlo simulator. So let’s see what happens… CURRENT PORTFOLIO/APPROACH Plugging in my hypothetical $2M and setting my spending strategy to ‘Fixed Inflation Adjusted’ with the Withdrawal Rate = 4% starts me off with $80k for spending. Not bad! 👍 Let’s say my time horizon is 30yrs and Inflation = 2.5%. Using the ‘Historic Backtesting’ option (which pulls full history of SP500 data) I can see this Model was a near 100% SUCCESS RATE through all time periods (5-30yrs). [pic#1]✅✅ But… Unfortunately I’m not comfortable running a 100% equity portfolio. Since im running a 60/40 portfolio I need to see what that looks like. THE BALANCED MODEL ⚖️😴 The only way to see the 60/40 Model using the tool is to change my simulation model to the Monte Carlo option. From there - I can keep the 100% equity option or change to a Global, 60/40, Conservative or even a Custom option by entering my own Return/Volatility assumptions. Before moving to my current 60/40 model I hit ‘Run Simulation’ on the SP500 (all equity) just to get a BASELINE result to compare other Models against. This showed a probability of 90-100% for the shorter timeframes but 88%-84% for the 25/30yr periods [pic#2]. Still - odds would be in my favour that our money would last! ✅ Moving to my Balanced (60/40) option I expected a lower success rate due to being more conservative but surprisingly the 25/30yr success rate jumped to 95-90% [pic#3]. A bit surprising - but I’ll take it!!👍👍 That said - I WANT A CASHFLOW MACHINE! 🏧 Even though above result showed that bonds improve my probability of success one PI Finfluencer suggested ‘bonds are useless’ and from all the CC ETF portfolios I see on Blossom I have to assume that 100% equity is much better for the CC ETF approach. Another Finfluencer suggest I need to ‘create a yield at least 3x bigger than my spending needs’. This would let me receive big monthly paydays to cover my expenses and the excess could simply be reinvested! I would ‘never have to sell a share’. Sounds great! Luckily - @karyungtom calculator lets me model all of this out and link to Return/Volatility assumptions based on the preferred asset allocation. So let’s take a look at… THE CASHFLOW MODEL 💰💰 Following the guidance of the Finfluencers I switched the model back to 100% Equity/SP500. This showed Expected Return = 10.5% and Volatility = 19.7% (both seem reasonable and inline). I guess I’ll just have to accept more volatility if I want to benefit from the high yields. 🤔 I referred back to the ‘Rules/Guidance’ I saw online for CC ETFs and saw I should have a mix of 15%+ and 30%+ yielding products. Based on that I set my models Distribution Yield = 25%. YES!!! On the Model’s $2M value a 25% distribution would mean a $500k per year PAYDAY! Now we’re talking! 🤑🤑 Let’s run it! …… WTF! The SUCCESS RATE stayed the SAME. 🤷♂️🤷♂️ The 25yr = 88% and 30yr = 84% is same as baseline [pic#2&4]. So no advantage. The portfolio generated way more cashflow but since I only need 4% to cover my spending I now have to reinvest the excess to make sure I get the same result. Hmm. I guess Distribution Yields don’t influence actual longevity. ‼️ What’s nice is the calculator actually shows this in the ‘Portfolio Path Table’. It even shows a hypothetical share count if you’re interested. Under this approach I guess I at least don’t have to ‘sell my shares’ right away since I’m receiving such big distribution. I guess that’s a bit of a convenience - but kind of offset by fact I have to figure out my reinvestments. 🙃 And wait - CC ETFs have much HIGHER FEES than the Tradtional Index/Factor ETFs I was using for my Balanced Model. 🤔 My model has a total cost of 0.5%. When I calculated the MER/TER of a CC ETF Model it was closer to 1.7%. I wonder if I should lower my Return to reflect the higher cost? I wonder if that makes a difference over 30 years? After all - 0.5% on $2M is $10k per year in fees and 1.7% is $34k per year in fees. Whatever 🤷♂️ - so I’m paying a bit higher in fees ($24k/yr). I can go check out @smallbird.financial website later for his Fee Calculator to see total impact. Let’s ignore fees for now and get back to my options for boosting my MONTHLY CASHFLOW… So far I have the same expected success rate and I’m just receiving cash instead of having to sell my shares but I’m paying a $24k/yr more fees and have to make sure I reinvest all the excess cash that’s coming in. That hardly seems like much of a benefit but since I’ve seen these CC/High Yield investors pay for vacations, kitchen renos and new hot tubs with distributions I can probably afford to take a bit more out for spending right? So let’s see what happens… HIGH SPEND MODEL 🏧🏦 With $500k per year or over $40k per month coming in and a $2M portfolio I can probably just reinvest 50% and take 50% or $250k for extra spending. An extra $250k of spending buys a lot of living!! Let’s go!!! Since my Yield = 25% I can set my Withdrawal Spend Rate = 12.5%. After all - I got some ‘juicers’ now! I’m not sure what a ‘juicer’ is (seems like a made up term for higher risk products) - but I’ll buy them anyway if it means I get an extra $250k! Let’s run it ….. AGAIN - WTF??? My first 5-10yrs looks fine - but by year 15 (when I’m only 65) it shows I’d have a 70%+ chance of hitting $0!! Year 25 = 88% and Year 30 = 90% chance of running out of money [pic#5]. ‼️🤬 So based on this success/longevity is NOT ‘impossible’ it just seems to be a lot ‘less probable’. Especially since this result is the exact OPPOSITE of my Balanced Model and 4% withdrawal that had a 90% SUCCESS RATE. So if I change - I get big paydays each month and don’t have to sell units but I have to take on more risk, pay higher fees, reinvest all the excess cashflow and accept that there’s only a 10% chance that my portfolio may still have some money by the time I’m 80?? Geesh - this is getting to be a lot to swallow. ⚠️😬 Maybe I missed something. Maybe this is better for SMALLER ACCOUNTS. I can change the portfolio value from $2M to $500k and maybe we can use it for our smaller accounts? Let’s run that… FML!! Changing the portfolio value did nothing. That’s also just a 10% chance of our money lasting 30yrs and a 90% chance that it runs out [pic#5]. ⚠️⚠️ Honestly - What’s going on? Ohhhh! You know what - this tool and calculator is probably wrong and just more ‘FUD’ because @karyungtom is one of those ‘growth’ investors. Maybe I should do what the other PI guys do and just block these growth guys. 😂 Then again - I guess the Finfluencers that I watched - despite their videos, spreadsheets, followers & sponsorships - may also just be learning and trying to figure this stuff out. So maybe I should take what they’re telling me with a grain of salt? 🤔 Either way - I get that these tools and calculators are all based on historic data (since future returns are unkown) - and they rely on a variety of assumptions and inputs - but just to be on the safe side and in case this analysis/approach is NOT totally wrong - I better take some more time to think and learn about portfolio construction, distributions and withdrawal strategies before I make a change to my actual portfolio. 🎯CONCLUSION As tempting as $40k / mth looks - given the trade offs seem to lead to a less certain/positive outcome I’m going to stick to my boring Balanced Model with 4% withdrawals because this data shows it has a higher probability of creating more sustainable longterm wealth. ✅✅✅ From these results - distribution yields DONT impact longevity. Only returns and withdrawal rates do. Letting high distributions lure you into bigger spending that is unsustainable is a real risk. 💡💡💡 MY TAKEAWAY ‼️ Despite everything I’ve seen online about the high yield strategies I’ve always seen distributions as a ‘feature’ of a portfolio - not an actual strategy on their own or a reflection of quality or indicator of future returns. This exercise more or less would support that view. 🤷♂️ I can see the use case for some CC ETFs in certain situations but it’s important to consider all aspects. Currently I’m happy with the small % that I own (more as a way to capture volatility vs for the yield) so maybe I don’t need to ‘go all in’ on them and take more risk or pay the high fees across my entire portfolio? 🤔 Since we can’t control markets or returns - withdrawing too much too fast seems like one of the surest way to damage a portfolio’s longevity and we’re probably better to control what we can - asset allocation, strategy selection, fees and withdrawals/spending. ✅ Still happy to have gone through the exercise. Hope this helps and you consider doing the same type of analysis for your portfolio. 🤓 Perspective ≠ Prediction Stay open to learning and do what’s best for you! 😉👍 ————- PS. Whether you agree with my take away and analysis or not - it’s worth exploring @karyungtom tool and entering your own models/assumptions. It’s a good one! 🤓 . read more
$AMD just added Tim Ryan to its Board of Directors. Ryan currently leads Technology and Business Enablement at Citi and previously served as U.S. Chair and Senior Partner at PwC. It’s not the type of announcement that changes the thesis overnight, but I think the background is interesting given how aggressively AMD is scaling its AI and data center business. Adding more enterprise and operational experience at the board level makes a lot of sense for where AMD is heading.
With the volatility we’re seeing in the market today, it’s worth remembering that periods of sharp market declines are nothing new. Since 1980, the S&P 500 has experienced an average intra-year decline of roughly 14% — yet many of those years still finished with positive calendar-year returns. The challenge with moving to the sidelines is that you have to make two decisions correctly: when to get out and when to get back in. History has shown that staying disciplined through volatility has often been more rewarding than trying to time the market and potentially missing the rebound. #Investing #Markets #SP500 #Volatility #LongTermInvesting
How to convert the $VIX into an expected daily move in 5 seconds 1️⃣ Check current VIX 2️⃣ Divide by 16 3️⃣ Get your 1-day implied range (1-standard deviation / ~68% probability) Quick cheat sheet • VIX 12 ➡️ ±0.75% • VIX 16 ➡️ ±1.00% • VIX 20 ➡️ ±1.25% • VIX 24 ➡️ ±1.50% Save this post for your daily watchlist routine. Do you use the $VIX ? 👇read more
From below snapshot: 🚨“This is no ordinary bond sell off.” ‼️“And if it persists, it could mark the beginning of a structural economic shift more enduring and more globally consequential than most previous episodes of market volatility.” Governments intervening to influence regular market dynamics is not a good thing. But that’s what happened yesterday when US Treasury offered liquidity to US Government Bonds. ⚠️ This may mask, mitigate and postpone a current/developing risk. But the underlying risk may still exists. 👀 Despite Equity Markets moving consistently higher the Bond Markets have been pricing in greater and greater risk premiums. When bond prices fall it is a signal that investors/lenders are demanding a greater compensation. Higher interest rates lead to higher real borrowing costs for everyday PEOPLE (mortgages, car loans, etc), BUSINESSES (where higher borrowing costs eat into profits and eventual may choose or be forced to postpone or forgo funding plans that ultimately can lead to lower growth) and GOVERNMENTS (who are forced to pay higher $ amounts on new and maturing debts used to pay for their various programs and initiatives). Currently - demand for longterm US Government bonds is so low that investors are demanding higher yields to reflect the growing US deficits, ongoing Iran conflict and concern that there may be a return of higher inflation. 📈 So far - Corporate Bonds have ticked higher but haven’t demanded their own higher risk premiums as of yet. But this is something all investors should be aware of. If higher Government rates persist than companies planning large debt raises to fund new projects may be forced to match the higher rates in order to raise the needed capital. This is a real cost and potential bite out of future (expected and actual) profitability. 😬 The impact of higher rates can be felt everywhere and eventual they can trickle through to Equity markets. In 2022 we saw how the inflation driven rate hikes impacted markets (20%+ drawdown). While the driver/trigger this time may be different the result has the potential to have a similar impact for equity markets. 📉 Macro trends move slow. But this is something investors should be aware of. 🧐 Depending on your approach and risk tolerance some investors may want to considerer reviewing their asset allocation and determining how their portfolio may be impacted if rates lead to another market drawdown. ⚠️ Perspective ≠ Prediction Do what’s best for you. 😉👍read more
Distribution yield tells you how much cash the fund is paying you. It does not tell you how much money the fund actually earned. Income investing is not a new way of investing, and while today's covered-call ETFs are relatively new products, the financial engineering behind many of them is not. Leverage, derivatives, managed distributions and return of capital have been used by investment funds to enhance or maintain distributions for decades. Going back to the late 1990s, when I first entered the investment space, there were already funds paying double-digit distribution yields. And the same argument people have today about high yield distribution they were having then. Though they were far less vocal as it wasn’t as easy to converse with as many people all at once. The fascinating part is that most people understand this concept perfectly when you remove the investment fund from the equation. If you ask someone whether they can spend more money than they earn without eventually depleting their savings or taking on debt they understand that. Like if your household earns $80,000 a year but spends $120,000 every year, that extra $40,000 has to come from somewhere. You can sell stuff, withdraw savings or borrow money, but none of those things magically turn an $80,000 income into $120,000 of sustainable income. Yet put that exact same concept inside an investment fund and suddenly people seem to struggle with it. A fund can absolutely pay out more cash than it earns. What it cannot do is create economic return out of thin air. @karyungtom had a well written article on this point I encourage people read it. https://www.blossomsocial.com/posts/High-Yield__POST-1787186691972-RSs7aPx2_t00uBlccemcq8jzT?commentId=COMMENT-1787188693133-kl9V1UcW-45z9lALx4jh3jnD8_POST-1787186691972-RSs7aPx2_t00uBlccemcq8jzT&parentId=POST-1787186691972-RSs7aPx2_t00uBlccemcq8jzT&parentType=POST read more
