The Market Cycles of Your Lifetime (Ch. 3)
Managing Money from Cycle 1 to Cycle 4
From Chapter 2, the concentric circles of the business, index, economic, and market cycles demonstrate a prediction model that guides the creation of investment strategies through the different market cycles.
The investment strategies during each cycle contain a portfolio of value, blend, and growth stocks. Value stocks are lower risk, lower investment profits. Growth stocks are higher risk, higher profits. Blend stocks are middle of the road, and are medium risk, and medium return.
Portfolio Samples
A few months back, I created a watchlist entitled Digital Nomad Stock Watchlist. The Watchlist contains 17 companies, all of which I believe will have the biggest impact in the digital nomad economy in the next 5-7 years.
Using this Watchlist as a stock picker (which you definitely shouldn’t 😉), an individual investor will have a portfolio makeup in Cycle 1 as follows:
Cycle 1 Portfolio.
Google GOOG 0.00%↑ (blend)
Microsoft MSFT 0.00%↑ (value)
Paypal PYPL 0.00%↑ (growth)
WalMart WMT 0.00%↑ (value)
Cycle 2 Portfolio.
Increase positions in Cycle 1 and add:
Airbnb ABNB 0.00%↑ (growth)
Upwork UPWK 0.00%↑ (growth)
Facebook META 0.00%↑ (blend)
Cycle 3 Portfolio.
Reposition (increase/decrease/remove) in Cycle 2 and add or replace with the following:
Zoom Inc ZM 0.00%↑ (growth)
Activision Blizzard ATVI 0.00%↑ (growth)
Fidelity Nasdaq ETF* ONEQ 0.00%↑ (blend)
ProShares UltraPro QQQ* TQQQ 0.00%↑ (blend)
Cycle 4 Portfolio.
Reposition (increase/decrease/remove) in Cycle 3 and add or replace with the following:
Apple* AAPL 0.00%↑ (value)
Amazon* AMZN 0.00%↑ (blend)
Disney DIS 0.00%↑ (value)
JP Morgan Chase Bank* JPM 0.00%↑ (value)
Spyder ETF* SPY 0.00%↑ (blend)
*Not included in the Digital Nomad Watchlist.
**All stocks mentioned can create a portfolio in any cycle.
The End of the Market Cycle.
The Market Cycles of Your Lifetime guides investment strategies using time-tested prediction models which has proven to be a reliable predictor of economic growth, and hence, individual wealth growth.
What is more unpredictable are the emotions an investor experiences through these cycles. Have one last look at the emotional roller coaster that you will experience during the market cycles of your lifetime.
Disclaimer:
This list does not constitute investment advice. Please exercise caution when investing as there are inherent risks.
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The Market Cycles of Your Lifetime
Chapter 1 — Enter the Market Cycle
Chapter 2 — The Economic Cycles within the Market Cycle
Chapter 3 — Managing Money Through the Cycles