Estimated reading time: 5 minutes
Timely updates to supercharge your wealth-building journey!
TABLE OF CONTENTS
Can you lose money by investing?
TLDR: Yes. But stick around, we’ll help you play it smarter. 😎
The reality check: no guarantees 🌧️
1st rule of investing — there’s no such thing as a sure thing.
Even rock-solid companies have risks. Shady business or money game aside, sometimes a legit investment cannot guarantee positive return.
Now, before you decide to stash your cash under your mattress 🛏️, consider the perks of investing.
Earning money usually means trading your time, skills, or services. By investing, you can generate income by putting your spare money to work. Who doesn’t want extra pocket money without working overtime? We all have only 24 hours a day, and even superheroes need a break. 💤
Some tips to manage your risk, you are welcome!
1. Embrace the variety: diversify! 🌈
Think of your investments like a high class buffet. You want a little bit of everything! Mix it up with different asset classes like stocks, bonds, real estate. Other than type of assets, remember to also diversify across different industries, sectors, and regions, you can easily access to them by taking part in US stock market.
For me, majority of my net worth lies in the US stock market, and mainly for two reasons —
- I like to invest in innovative business that have potential growth in long term (e.g. Apple, Tesla, Google) 📈
- High liquidity offered by the US stock market 🛒. Stocks are easy to buy and sell, with simple funding and withdrawal process, unlike property investments that requires multiple parties, not to mention the long and cumbersome process.
- I want to store my asset in USD 🏦the world’s reserve currency – it has been strengthening against the Malaysian Ringgit since forever, and our buying power will drop if we only hold MYR. So, rather than sitting there and complaint, why not make some small fortune out of it 🙈!
2. Choose your game 🎲
Are you a chill board game night or adrenaline-pumping escape room kinda person?
Each investment comes with its own level of risk, so pick what suits you best.
It’s all about striking the right balance: find tools that meet your target returns without waking you up at night.
Finding Your Sweet Spot 🎯
You can play safe; you can play risky.
Neither is wrong, you just got to find the one that work best for you.
But here’s a tip: you can start by playing safe, then move up the ladder – who says you must tie yourself to one investment asset class forever!
3. Time in the market beats timing the market 🧘♂️
Rome wasn’t built in a day, and neither is a solid investment portfolio. We can’t predict the future (sorry, no crystal balls here 🔮), so focus on long-term growth instead of chasing short-term market swings.
This is what I usually do – invest regularly by dollar-cost averaging to help smooth out market volatility and reduce the impact of poor timing.
4. Knowledge is Power 🔍
Do your homework, and don’t just jump on the latest trend. Follow market news, stay informed (subscribing to us is one brilliant way!) and make educated decisions to maximize your chances of success!
And most importantly — Never invest more than what you can afford to lose.
So, with a well-diversified portfolio and a long-term mindset, the odds are in your favor! Remember: do your research, and don’t just blindly follow the latest hype.
As Warren Buffet once said: “Risk comes from not knowing what you’re doing.” So, arm yourself with knowledge, diversify your portfolio, and think long-term. The odds are in your favor!
May I say, happy investing 🎉
p.s. if you want to invest in US Stock market but also feel overwhelmed because of the tax paying, I am here to help! In this video I will share with you about Tax Guide for US Stock Investors , and you will be ready to keep money in your pocket!
Word of the Week: Gross Domestic Product (GDP)
Definition: Gross Domestic Product (GDP) is the total value of goods and services produced within a country’s borders during a specific time period, usually a year. It is used to measure and compare the size and growth of economies.
GDP is a crucial indicator used to assess economic activity, growth, and the overall health of an economy. It represents the monetary value of all final goods and services produced within a country’s geographical boundaries.
GDP = Consumer Spending + Business Investments + Government Expenditure + (Exports – Imports)
Let’s consider an example of country’s GDP for a year.
Total consumer spending = $500 billion
Business investments = $200 billion
Government expenditure = $100 billion
Exports = $150 billion
Imports = $100 billion
The GDP can be calculated as follows:
GDP = $500 billion + $200 billion + $100 billion + ($150 billion – $100 billion) = $850 billion
In this case, the GDP of the country for that year would be $850 billion.
Key Economic Dates:
- 29th June: US GDP (Q1)
- 30th June: Core PCE Price Index (May)
- 3rd July: ISM Manufacturing PMI (Jun)
- 6th July: Services PMI (Jun), ISM Non-Manufacturing PMI (Jun)
- 7th July: Unemployment Rate (Jun)
What I’ve been reading:
Here are the top stories that caught my eye:
- Powell expects more Fed rate hikes ahead
- Short Bets on US Stocks Highest Since April 2022
- Goldman and UBS cut China growth forecasts
- Tesla is coming to India
You’re all caught up!
If you enjoyed today’s newsletter, do share it with your friends and family!
If this email was forwarded to you, consider subscribing to receive them in future!
And if you have any questions, don’t hesitate to reach out to me by replying to this email. We are also delighted to receive your feedback.
Cheers,
Ziet
