WATCH THIS VIDEO before you start investing

1. The Three Market Movements: Going up, sideways or down Going up: happy days. But it’s when you start getting cautious as your assets are gradually becoming overpriced and therefore the time to sell these is approaching. Sideways: then you’re collecting dividends, so all fine. You probably should stick to it as switching to a similar asset incurs broker fees which eats your dividends. Down: You’re still collecting dividends and the stock is really cheap to buy. This is a market in full discount. Imagine walking into a clothing store and everything was 90% OFF. Would you buy more? If so, why wouldn’t buy more stocks when at its lowest? 2. Thoughts on Investing when Timing the Market When you make a decision you become committed to a company in that category, that means if you buy a competitor, you are not betting on a company per se, but in its industry. Conversely, if you’re out of the market, then you will have missed opportunities. Because you can never time when it is going up or down. And the market may never return to a point where you should’ve entered. Therefore, you should be comfortable with the annual average correction of 15.6%. And with the crisis every 7-10 years. It’s normal. 3. Diversification: “The market can stay irrational longer than you stay solvent”​ Nassim Taleb recommends a Barbell strategy which means having a high-risk asset offset by low risk in your portfolio. This is a sound hedge strategy. For example, Currencies or start-ups (high risk) vs gold or bonds (conservative).