Thanks to overwhelming responses of Ein55 graduates, we just had the largest graduate gathering event today with 550 attendees, entire 550-seats auditorium is full (see group photo taken). I am touched to see a few late comers were even willing to sit on the floor, not to miss the learning.
Here are the 7 key learning points for sharing:
1) Year 2018 is a bearish global stock market, confirmed by the last bullish stock market, US (contributed to 50% value of global stocks), which has turned bearish for short term since Q4/2018.
2) There are 2 main possibilities: major correction or global financial crisis. Regardless of which outcome, mastery of 4 exit strategies are explained:
2.1) Exit when direction is wrong with risk tolerance reached
2.2) Exit with counter-trend strategies
2.3) Exit with follow-trend strategies
2.4) No Exit is required (only certain criteria allows so)
3) Stock investment is an integrated plan with 5 factors: LO-FTP, maximum of 5 stars for the best opportunity, minimum of 3 stars are required.
L = Levels 1-4 (alignment with smart money)
O = Optimism 0-100% (alignment with market emotions)
F = FA strength (alignment with business)
T = TA trends (alignment with prices)
P = Personal Actions (alignment with personality)
4) Defensive-growth-dividend giant stock is ideal dreamteam stock for long term investing during Levels 1-4 crisis. A few examples were given.
5) Decision making in stock is personality dependent. Long term investor may consider to buy at long term low optimism as contrarian investor while a short term trader may short at the same stock to make profits. Both could be correct actions. Do not blindly copy another expert’s best strategies, need to internalize them, forming own unique personalized investing.
6) 2 major actions are required: Spring Cleaning (if having stocks, following 5-steps processes given) and forming of Dreamteam Stocks (if do not have stocks).
7) Cash is King. A smart investor would not lock in the cash for over 1 year commitment (eg. long term bond of a few years). Crisis could become opportunity when cash is used at the right time in future with consideration of giant stocks and Levels 1-4 crisis.
General public may catch up with Global Stock Market Outlook 2019 by Dr Tee through free 4 hours investment course. Register Here: www.ein55.com
