Opportunity in Commodities

Just a word of advice, but I would start watching commodities. I don't think anything drastic will happen at the moment, but obviously when prices are this low they'll eventually go this low. Right now I'd probably avoid putting my money into commodities as they could still be a falling knife for awhile. But what I would be doing is setting up a plan for what to do with commodities in the future.

Oil - Look for companies with little debt, as many companies have overburdened themselves with bad debt. These companies will go under and the companies with a good cash management strategy will go on and up. 

If you want to keep things simple, look into oil ETFs. These represent a variety of oil stocks rather then just one.  Oil could in fact be hovering at its bottom so I would keep my eye on it. What makes oil so unpredictable is that damn dollar which brings me to...

Gold - BUY GOLD NOW! Just Kidding. I almost feel like gold is more unpredictable then oil. With a dollar that's on steroids right now there's no telling how low gold can go. Because of this I would not invest in gold right now. However while watching gold I would also watch the dollar. Once you see a downtrend in the dollar I would jump on gold.

Copper - Another popular beaten down commodity. We all remember the "copper rush" that took place a few years ago. Copper is trading at its lowest level in years but has since come off its January low. Look into companies involved with copper as they too should be falling right now. Once you see support develop I'd look at investing here.

Natural Gas - another beaten down, widely used commodity I'd keep my eyes on. 

Stock Market Strategy 2015

Contrary to popular belief the U.S. is far from the best market to invest so far in 2015.

Two better options thus far?

Germany and India.

Going back to December, the analysts were telling people that the global markets would be lagging behind the U.S. however this is simply not the case. Due to Europe's 2015 QE campaign their stock market is on fire and will continue to be. Remember, QE is what has gotten the U.S. market where it is today. India has always just surpassed China for the world's fastest growing economy. I strongly suggest looking into European (particularly German) and India ETFs for a good place to put your money.

I think the U.S. market is only starting it's volatile ride so far in 2015. I wouldn't invest in this market right now even if you think a stock is trading for a good price. In my opinion I think almost all stocks have more room to fall for two reasons..
1) Stocks aren't AS overvalued as they were, but they're still not cheap enough either. Considering the dreaded correction has not yet come (it will come when the big institutions are finished unloading their shares) I think this market has plenty of room to fall more. If you think stocks are a good deal now just wait. They'll probably be cheaper soon enough.
2) No more QE. It doesn't take a genius to see how different the markets perform with and without QE. This is why valuations have gotten so out of whack because all of the "funny money" the fed has continued to pump into the market. Without QE these stock prices will not hold.

When it comes to investing we tend to make it much more difficult then it needs to be. One of my main strategies is to see what all the big banks/financial institutions are buying. Why? Because the way to work the market is to see where it's going and ride it and where ever the big boys are buying the market is going.
Guess where all the money is going right now? Europe and Asia.

I would consider investing in foreign markets and trading the volatile U.S. markets..

The Importance of Income Diversification

 You want to know something? When it comes to investing or making money there's very few things that are promised. No one can truly protect your money but you and this is done by diversifying your income.

Whether you're on a mission to get rich or just be comfortable you never put all your eggs in one basket. When you look at wealthy people such as Bill Gates or Warren Buffet and see how how they manage their wealth you notice that they have multiple investments. Bill Gates isn't just Windows and Warren Buffet isn't just the stock market. This is why these two men are so rich and continue to get richer.

So lets talk about the middle class person. What can this person do? Here's a few things.
A lot of people are taking up the idea of being a Business Owner these days which is good as long as you do it right. But if you have a decent job I'd suggest keeping it with your business/hustle. All business's big and small go through good and bad times. So for a small business owner it's good to have that income coming in from a job on the side.

Lets talk about Passive Income. How  does one do this you ask? There's different ways. You can invest in the stock market, real estate(the most expensive way to start) or you could invest in some one's business. The whole point of passive income is having money come in continuously without having to do anything. One simple mistake I think people make when it comes to passive income is greed. How so you ask? Many people think an investment should pay ten fold from the beginning. Real investors know that investments build up over time. So think about this...If you're just starting out and you're the average person just trying to pay their bills and live you're telling me having an extra $3-400 from the start wouldn't help? Of course it would, as you could put it towards a number of things. After a while a few hundred grows to a few thousand and then you're making more money sitting on your couch then other people make working all day.

This is how the rich get richer and the middle class become rich. Income Diversification builds wealth and keeps cash flowing. So do your research and start building your financial stronghold.

Putting Your Money To Work

"The impression was gaining ground with me that it was a good thing to let the money be my slave and not make myself a slave to money." -  John D. Rockefeller

Ask yourself, what is my money doing? 
Is it sitting in a bank account collecting 0% interest? Is it stuffed away in a safe or mattress losing value every few years? Chances are, you're saying yes to one of these questions. I'm not blaming you, you just need to be educated.

My friends, let me tell you something. If you think the key to being well off is working for someone else and saving your precious pennies you're just plain wrong. The key is to save, but once saved up put your money to work. I don't suggest savings accounts, Cd's, etc, unless you have a fat amount saved up (100K or more) I suggest investing in something that you know. It could be stocks, real estate, a business, etc. Whatever it is you need your money to multiply.

Why you ask? Why can't I just play it safe and put my money away? Because inflation along with the cost of living will continue to rise. If you want to retire and live well doing so you need your money to accumulate. I suggest you do your own research before just going to your bank and talking to an advisor or broker. Why do I say this? Because all too often they're looking to make money off of you, not for you. I suggest doing you're own homework for your own good.

I also suggest diversification. There's never such a thing as a safe investment. Income can be disrupted at anytime. To protect yourself against this you need money coming in from different places. 

Knowing how to make and save money is the key to getting ahead. Follow this blog and I will show you how

Getting Control Of Your Finances

Whether you're a millennial or a boomer you realize times are tough.

Rents high, foods more expensive then ever, our now cheap gas is going back up, etc.

So how does one survive this financial jungle? I'm going to share some of my own advice and show you some ways you can save money without sacrificing quality of life


Many people think networking is only for a business man. That's just not true as anyone could benefit from networking. For instance, food is so expensive these days that even being single is no longer cheap. So how can you eat for cheap without eating beans in a can every night? Create a "food plan" with your friend. You and a friend can split a food bill. The trick here is buying food in bulk. If you go to your nearest food store you wont get much bang for your buck. However if you and a friend go to a bulk food supplier and split the bill, you can lower your food bill and get more food then you normally would for almost half the price.
Internet-share wifi with a neighbor
Gas - Share a vehicle with you and your neighbor while splitting the gas bill

Roommates are a good option to, especially if you're single. I realize the wrong roommate can be a nightmare so be smart when picking your roomie out. By doing this your bills are cut in half, and you can finally move out of your parents basement!

Utilities such as the A/C will cost you the most. Turn it off or up whenever you're not home. To help keep your home cool use dark, thick curtains. Go for tile over carpet as it keeps the house cooler.

So we've went over some home habits, what about you're daily habits?

We went over food before, but what cost people another pretty penny is their beverages. Stop going to Starbucks, waiting in the endless drive through line to buy your $5 coffee. (Even if your coffee is cheaper, anything you buy daily adds up) Be smart and make your coffee at home. Same goes for those of you sucking down your $2 energy drinks three times a day. Be smart and cut out repetitive expenses.

I'm going to give you a goal: Save at least 10% of what you make every month for the next year. That's it. Some people save more but for someone that can't seem to get it going this is a good place to start.

Now I understand this plan can't work for everyone, each person has their own unique situation. But when it comes to saving you have to be creative. Not only that but you have to be willing to sacrifice. If you want to just get up everyday and grind then continue getting by with the same habits. But if you really want to live a different lifestyle where you're in control of you're finance you must get control of yourself and your daily habits first.

Any questions? Feel free to ask and I'll answer in my comments. If you'd like to contact me personally, my email is SunshineTrading772@gmail.com

Good luck!

The Rising Rent Problem

 Let me start this out by say this is not an article compaining of any conspiracy, or hating the rich or any of the nonsense you read all over the internet. However there is a big problem going on with real estate prices and we as a country need to realize it before the inevitable happens.

 A good amount of Americans are renters since the recession and although recent job data tells you job growth is rising I don't think anyone is excited about their part time Walgreen's job. Because of this, real estate has sky rocketed much like the stock market in recent years. This is good to a certain extent. When real estate came back from the crash it was good for this country. However once the real estate boom inflates the cost of living it becomes a bad thing and that's exactly what's happening right now.

The average rental rate in America is over $1000 right now. People hear this and say buy a house. But what about the millenials moving out of their parents? It's ridiculous to force them or anyone into a 30 year mortgage just to get a reasonable rate of living. The problem is you're also stuck in a mortgage, many of which are sky high right now due to rising prices. Either way you lose when you think about it.

 I currently had my rent increased from 1100 to 1300 in my own apartment. I tried relocating to a cheaper location (I would have been saving about $100 a month from what I was previously paying) but was told I  now make too much. Keep in mind, you're told this in Florida if you make 35,000 or more a year. How does this make sense? People say this makes sense so that people with lower income can afford it. Keep in mind, I'm looking at an apartment for $1000. Why would apartments for these prices be reserved for someone with low income? When I see things like this and then most people say they don't have any savings it's no wonder why.

People have tried looking for cheaper solutions only to have zoning or construction laws get in the way. So this is where something needs to give. Obviously greed is driving up rental rates to unsustainable levels. This is inevitable and eventually the market will correct itself as it usually does. However if you have laws restricting people from cheaper options you almost force these insane rental rates or mortgages on the people. If people who make 40,000 or more a year are forced to pay over one third of their earnings on just having a space to live while not including taxes, utilities, living costs, etc. how can people ever save up?

If we keep going the same way we're going things will crash just like they did before. Lawmakers have to allow renters more flexibility. If they allow people cheaper housing options (no i'm not talking about parking a trailer in a neighborhood) rather then forcing laws on landlords the market will correct itself without government sticking its nose in business. They can keep talking about lower energy costs all they want. It means nothing when your housing costs are insane. As I said before, something needs to give here. Hopefully it wont be the economy this time.

Learning how to live with volatility

Volatility has become a popular word lately. Some love it, some hate it. While I do think the recent endless batch of volatility has been a bit much, the right amount is a beautiful thing. Why you ask? It's common sense.
To understand we go back to the basics: Buy Low, Sell High. 
When the market gets slaughtered it allows traders to move in when stocks are low and make a quick exit on good days of the market when stocks are high. Most people think you have to wait for a market crash to turn a good profit off the stock market. This is simply not true. If you want to own the stocks the media pumps up, sure you probably would have to wait for them to crash. But smart investors will realize they don't have that advantage so they move on to the next trade.
It takes time and research, but there is always a profitable company trading below its moving average and that's where you make a killing off volatility.

I don't claim to be a market expert like everyone on Twitter, but by now I've learned a thing or two in my time on the Stock Market. The one thing that has become crystal clear to me is avoiding the noise. You see when traders watch CNBC and hear them pump up over inflated, non profitable stocks like Twitter and Tesla and then drool as they listen to analysts declare sky high price targets, justifying it with this weak statistic or chart analysis things start to get ugly and investors lose money. Why? Because now traders are making fundamental mistakes.
#1 They're buying the stock when its high, hoping that the stock will get them that shiny $30 dollar price gain. Good luck with that one. Warren Buffet would be ashamed.
#2 They're doing this based off inflated fundamentals. Looking at strictly revenue or annual EPS growth does not tell a stock's full story. This now sets the investor up for huge losses when the stocks misses analyst estimates or doesn't live up to the hype.

Even traders with the intention of making a quick trade lose out when following these guide lines. I remember something I read when I first got into stocks from Warren Buffet, "If you wouldn't own a stock for ten years don't own it for ten minutes"
Technical traders would argue that's not always true and they have a point as you can profit from using chart analysis, assuming you're good enough. however sometimes numbers/charts DO lie and that's where the fundamentals come in. Sure it's nice to buy a stock below its 200 day moving average. But is it profitable? Can it make it back up? Why are investors dumping the stock? Looking at the fundamentals along with the chart will tell you what you need to know.
Inside information is illegal, and depending on your broker or the media to help you make the right moves is a recipe for disaster. The greatest defense you have is your knowledge of the markets.

Speaking of defense, You hear people say buy gold, buy bonds, etc. to protect yourself in stocks. If that's your strategy your better off putting your money in a savings account as you'll get about the same rate of return without the hassle.
In my opinion the only real way to defend yourself is by buying high and selling low. For most of the big name stocks you constantly hear about, this is almost impossible to get a stock for good value because they're so over inflated. So you have to ignore the noise and go hunting for true value deals.
To illustrate this for you, say I buy stock X at 17.00 the following year it rises to 67! woohoo! but wait, now it just fell down to 27 from a sudden, devastating move to investors. So while all the sheep that bought the stock when it was trading more then 10 times book value get slaughtered while the hunters who bought it when it was low and hidden away from the hype are still standing with a profit.
Is this a perfect scenario? Of course not, but it shows you how in the event of the stock crashing you can not only prevent losses but also still turn a profit. This is due from buying the stock at the right time.

We as human beings tend to complicate things, and the stock market is a fine example of that. While it's not easy, it's more difficult then it appears because people make it more complicated then it needs to be. My suggestion? stick to the fundamentals and rules of analysis.