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My (Current) Roadmap to Choosing Companies

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To call the current market situation turbulent would be an understatement. And to understand why, you might want to read my articles “What is happening in the market?”  followed by “Recession coming” . To wade our way through this impending storm, we need a plan. Here is mine.  My primary objective will be to keep my portfolio as far out of the red as possible with companies that can take a hit, whist keeping an eye out for companies that may shoot to the moon after recession dwindles. To do that, I will be using 3 filters to differentiate companies into conservative, enduring ones and potential moonshots. If you’re on time, you can take a look at the diagram below. It summarizes my entire approach. Otherwise, a lengthier explanation can be found below the diagram.  The Roadmap Filter 1: Find Companies with a Competitive Edge Almost every company is going to have to take a hit, but only the ones with a competitive edge in their industry are going to be able to survive the hit. This cou

Fed Reverse Repo Again?!

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  Hi everyone,  It’s me, TUB. I will like to thank all my readers, new and old, for staying with me. Special thanks goes out to uSMART Securities for sending me tasty new year bak kwa and auspicious red packets. May we huat (Hokkien for prosper) together this year! As you may or may not know, I have paying special attention to the Fed Reverse Repo agreement this year. Here are some key points to note.  Point 1: There is still US$2 trillion on the sideline. Point 2: The Fed Reserve Repo has fluctuated quite drastically. I’ve made content trying to explain when they were at milestone values of US$2.3 trillion on 29 December 2022 ( Link here ) and US$2.5 trillion on 30 December 2022 ( Post here ) . Now that it’s at US$2.17 trillion, I figured we’d make content about that too.  Source: Yahoo Finance It is important to note that the drop in Fed Reverse Repo coincides with a rise in the S&P500 index as well as the values of many smaller cap companies. To me, this means that market liqu

Side Hustling In 2023

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Hi there,  A very happy 2023 to everyone. My name is Ram. If you’ve noticed a change in article tone and phrasing, that’s me. Originally a copywriter, I took an interest in finance — and was waddling through its shady, scary terrain before I met T.U.B and offered to write in exchange for him being my finance compass. Unlike T.U.B, my writing is more clunky. I like to use analogies and sometimes go a little too wild with them. The pieces from today will be an experiment in amalgamating our vastly different narrative style, and I would appreciate any comments them. And if you enjoy this style of writing, I do freelance, and you can contact me at ramdonri.freelance@gmail.com Beyond our shared interest in finance, I think our passion for side hustling is what has made this partnership quite seamless so far. A wise man once said that “the only people who think that money is not the answer, are the ones who are running from problems or are the problem.” While not as extreme, we do believe t

All I Want For 2023 Is A Clean Slate

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And to do that, I have 3 confessions to make. Confession 1: I am a contrarian.  And I will continue to be one until the day I stop investing. The intellectual challenge is to die for, and the excitement that comes with riding harder and more turbulent financial waves unparalleled. In the face of a 2023 recession that threatens to sweep away all our hard-earned capital gain, I proclaimed it as ungrounded chatter that will no sooner evaporate into thin air.  Here's why, click here and here . Confession 2: The analysts are starting to scare me. More and more financial institutions have raised the alarm for an impending recession, and I have to admit that it has shaken my resolve. But for a very different reason.  As a contrarian, I rely on cold hard logic especially in times of high stress. To the financial analysts running away from the potential economic tsunami, I say surf's up. Source: https://fred.stlouisfed.org/series/RRPONTSYD The Federal Reserve’s reverse repo agreement i