Investment Strategy

OfWealth’s top 10 essential reads of 2016

Rob is currently in rural Uruguay, and with limited internet access. Before he went he put together a collection of ten of the most read articles that OfWealth published during 2016. Each has its own story to tell, and valuable lessons for investors.

From Rob: These are in no particular order, except that some are in two parts. I wanted to highlight them in case you missed them first time around, or perhaps because you’re a new subscriber.

  1. Stock alert: hell-fire or hell yes? This highlighted the opportunity to make two or three times your money from deeply discounted Deutsche Bank stock. Since the article, from 29th July, the price is up 45% in euros and 30% in US dollars. But there’s a lot more upside left.
  2. The investor’s greatest weapon. Something that’s far too often underrated – plain old common sense. I explain why it matters to investors by comparing the stocks of two giant companies – one old and one new – that operate in the same sector.
  3. Money and the missing link – Part I. Successful investing is, obviously, about making money. So a decent starting point should be to know where money comes from. Yet very few people understand this fundamental issue. This article demystifies it all.
  4. Money and the missing link – Part II. Although money comes out of thin air (but not the way most people think), its volume is normally restricted. Here I explain why, but also why governments could resort to handing out vast amounts of “helicopter money” in the next big downturn.
  5. Why I’m still buying Russia and selling the USA. A reminder of why Russian stocks are much better value that US ones. Russia has massively outperformed the US in the past two years, but is still (by far) the better buy.
  6. Europe edges closer to collapse. Written in the run up to Britain’s vote in June on whether or not to stay in the EU, this looks at some of Europe’s deep-seated problems, and why gold is a hedge against uncertainty.
  7. The safe way to invest in tech stocks – Part I. Tech stocks often sound exciting, but tech is a highly risky sector to invest in. This article starts to look at why.
  8. The safe way to invest in tech stocks – Part II. Digging further into the pitfalls of tech investing, this article explains a safer way to invest in this huge sector.
  9. Is it time to invest in Argentina? Argentina captured a lot of attention when the voters kicked out a long-in-the-tooth populist government at the end of 2015. But there’s a lot of mess to sort out, and stocks still look expensive. Improvements in a country’s economic prospects don’t necessarily make it an attractive investment destination.
  10. Hard profits from soft currency stocks. Against all our intuition and expectation, countries with the weakest currencies tend to have the best performing stock markets in subsequent years – measured on a like-for-like basis, such as in US dollars. This article looks at the evidence.

I hope you’ve found OfWealth useful during 2016. It’s been an interesting year. Look out for much more as we head towards the unknown events of 2017.

Stay tuned OfWealthers,

Rob Marstrand

robmarstrand@ofwealth.com

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Rob is the founder of OfWealth, a service that aims to explain to private investors, in simple terms, how to maximise their investment success in world markets. Before that he spent 15 years working for investment bank UBS, the world’s largest wealth manager and stock trader with headquarters in Switzerland. During that time he was based in London, Zurich and Hong Kong and worked in many countries, especially throughout Asia. After that he was Chief Investment Strategist for the Bonner & Partners Family Office for four years, a project set up by Agora founder Bill Bonner that focuses on successful inter-generational wealth transfer and long term investment. Rob has lived in Buenos Aires, Argentina for the past eight years, which is the perfect place to learn about financial crises.