Us and Indian stock market

[Ingit]

I currently invest in US and Indian stocks market…

1.  For long-term investors, which market offers better opportunities in 2024 and beyond?

2. I want to make most profit, what strategies should I apply?

3. I invest my 80% salary in stocks and almost runs out of money at the end of the month.

4. Very attached to profit/loss keeps on opening app every other hour.

5. How can I  improve spiritually along the investment path without worrying?

thank you

 

[Arthur]

Here are my two cents on your questions:

1. The US market has been the strongest historically (reserve currency status, free market etc.), but some allocation in emerging markets is a good approach. I would go majority on the US and maybe 20% emerging.

2. It has been proven that if you want to maximize profit, the passive investing approach outperforms active in the long run. In other words, set and forget your funds in an all-market ETF.

3 & 4. 80% savings is a very high number, remember that investing will not make you rich. It will sponsor your retirement and it will make you wealthy, but only in your 50s and 60s. Therefore there is no reason to be over-excited right now and compromise on enjoying your life with the means you have. Also, if your goal is to become rich, investment in yourself and a business will go much further than stocks.

5. Focus more on spirituality, allocate less of your funds for investing, and make a rule that whatever you put in can only be taken out in retirement. Although it is exciting when you first get into it and see the numbers grow, investing has a long time horizon.

[Michael569]

On 02/12/2024 at 7:17 PM, Ingit said:

 For long-term investors, which market offers better opportunities in 2024 and beyond?

There is something to be said for distributing across as many markets as possible, ofcourse within the limits of safety. You don't want to buy bunch of Venezuelan bonds at 80% marginal value just to see them shrink over next 10 years to 10%. At the same time, if you are, for example, German, you don't want to invest only in German or European bond & stocks because your salary and your pension is already tied to the European economy so you would want to explore APAC, US, UK opportunities. 

But these days, most of the investment funds have a fair distribution among US, UK, Europe and APAC. I've not seen India markets specifically so can't comment on that. 

 

On 02/12/2024 at 7:17 PM, Ingit said:

. I want to make most profit, what strategies should I apply?

don't we all  

Read the Intelligent Investor, that gave me very good start into understanding the investment world. Actually read it, don't just skim over it. Highlight chapters and then return to them over and over. Its a book to be studied./ 

Overall,  there are no shortcuts.  Longitudinal research shows that methodical slow investing over decades where you take advantage of compound interest is the safest and most reliable way for most people to make decent money. This means sending a little bit of money each month and having multiple of such funds to diversify your risk.

There are also a variety of pot options where you put money away for a year into a fund or a product and in 12 months you get them back with a compound interest. Your bank might have some of these available. You have to be a bit lucky to catch a nice AER (annual % return). I caught 5.6% last year and invested which brought me some nice revenue few weeks ago. This year it sank to 3.5% so I reinvested that money into something else. You can subscribe to European bank's newsletter (if you live in EU) to stay up to date with the current interest rates and evolution in the EU economy. 

Hopping from one fund to another, selling and buying couple times a day is only an option if you have extremely deep knowledge of the markets and if you can do this full time. It is incredibly dangerous too. You are competing with traders and banks across the world and it is such a thin ice to walk on. But many have made money this way so it could work. 

You also have to account for your age, your situation in life , your current wealth and how much of that you can spend etc,. For example spending half your salary each month on speculative investment is potentially a disastrous thing to do where investing methodically 10% of it into 10 different funds with distributed locations and distributed risk leaving them like that for 5-20 years is potentially a brilliant idea. 

On 02/12/2024 at 7:17 PM, Ingit said:

I invest my 80% salary in stocks and almost runs out of money at the end of the month

I don't know how old you are but you're potentially committing a financial suicide. Do you not have to pay your rent / bills / food / travel and other expenses? Or if not at the moment, will you not in the future perhaps when you live alone or with a partner? 

Keeping some cash in reserve is a good idea. A good way to calculate that is, if you lost your job tomorrow and couldn't find another one, could you last 9-12 months at the current expense rate? That's how much cash you should hold. 

( amount needed per month) * 12. Maybe multiple the whole thing by 0.9 if you think you could tighten your belt a little bit. 

 

On 02/12/2024 at 7:17 PM, Ingit said:

Very attached to profit/loss keeps on opening app every other hour.

You are a candidate for reading the Intelligent Investor indeed

On 02/12/2024 at 7:17 PM, Ingit said:

How can I  improve spiritually along the investment path without worrying?

You can't if you do speculative investing like that. Committing 80% of your income into investing is almost like trying to be healthy on 2 hours of sleep. It will devastate your mental health because stakes are way too high and if you loose it all, if the market crashes you're left broke. Its basically gambling with your own sanity and self preservation mechanism. That's why you worry. 

Consider leaning more into slow sustainable investing that doesn't force you to check all the time and react emotionally to each small fluctuation. Ideally you would be checking maybe once a week or even once a month. 

 

 

Edited December 4 by Michael569

[Ingit]

On 4/12/2024 at 5:51 PM, Michael569 said:

There is something to be said for distributing across as many markets as possible, ofcourse within the limits of safety. You don't want to buy bunch of Venezuelan bonds at 80% marginal value just to see them shrink over next 10 years to 10%. At the same time, if you are, for example, German, you don't want to invest only in German or European bond & stocks because your salary and your pension is already tied to the European economy so you would want to explore APAC, US, UK opportunities. 

But these days, most of the investment funds have a fair distribution among US, UK, Europe and APAC. I've not seen India markets specifically so can't comment on that. 

 

don't we all  

Read the Intelligent Investor, that gave me very good start into understanding the investment world. Actually read it, don't just skim over it. Highlight chapters and then return to them over and over. Its a book to be studied./ 

Overall,  there are no shortcuts.  Longitudinal research shows that methodical slow investing over decades where you take advantage of compound interest is the safest and most reliable way for most people to make decent money. This means sending a little bit of money each month and having multiple of such funds to diversify your risk.

There are also a variety of pot options where you put money away for a year into a fund or a product and in 12 months you get them back with a compound interest. Your bank might have some of these available. You have to be a bit lucky to catch a nice AER (annual % return). I caught 5.6% last year and invested which brought me some nice revenue few weeks ago. This year it sank to 3.5% so I reinvested that money into something else. You can subscribe to European bank's newsletter (if you live in EU) to stay up to date with the current interest rates and evolution in the EU economy. 

Hopping from one fund to another, selling and buying couple times a day is only an option if you have extremely deep knowledge of the markets and if you can do this full time. It is incredibly dangerous too. You are competing with traders and banks across the world and it is such a thin ice to walk on. But many have made money this way so it could work. 

You also have to account for your age, your situation in life , your current wealth and how much of that you can spend etc,. For example spending half your salary each month on speculative investment is potentially a disastrous thing to do where investing methodically 10% of it into 10 different funds with distributed locations and distributed risk leaving them like that for 5-20 years is potentially a brilliant idea. 

I don't know how old you are but you're potentially committing a financial suicide. Do you not have to pay your rent / bills / food / travel and other expenses? Or if not at the moment, will you not in the future perhaps when you live alone or with a partner? 

Keeping some cash in reserve is a good idea. A good way to calculate that is, if you lost your job tomorrow and couldn't find another one, could you last 9-12 months at the current expense rate? That's how much cash you should hold. 

( amount needed per month) * 12. Maybe multiple the whole thing by 0.9 if you think you could tighten your belt a little bi

 

 

Thank you so much 🙏🙏 eye opener 

[Ingit]

@Arthur thank you ❤️❤️ I got it