- Article: “Pope is worried about the market”
- Derivatives are an area we don’t spend much time talking about
- Contract between two or more people where the value is based off underlying securities
- The movie “The Big Short”
- CDS = credit default swap
- People focus on the financial crisis; when people invest in stock and equity the general rule of thumb is the time horizon is 5 years
- Financial crisis creates more opportunities to buy great businesses
- You always want to be investing and preparing for the next correction
- Asset allocation strategy is so important
- Investing in bonds is extremely dangerous
- You must understand why you’re owning the bonds
- As inflations and interest rates go up, so does buying goods and services
- Investment portfolio should be about growing faster than inflation for having the purchasing power
May 17, 2018