Category Archives: Building Wealth

Bond Investing

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When investing in bonds, it’s important to:

  1. Know when bonds mature. The maturity date is the date when your investment will be repaid to you. Before you commit your funds, know how long your investment will be tied up in the bond.
  2. Know the bond’s rating. A bond’s rating is an indication of how creditworthy it is. The lower the rating, the more risk there is that the bond will default – and you lose your investment. AAA is the highest rating (using the Standard & Poor’s rating system). Any bond with a rating of C or below is considered a low quality or junk bond and has the highest risk of default.
  3. Investigate the bond issuer’s track record. Knowing the background of a company can be helpful when deciding whether to invest in their bonds.
  4. Understand your tolerance for risk. Bonds with a lower credit rating typically offer a higher yield to compensate for higher levels of risk. Think carefully about your risk tolerance and avoid investing solely based on yield.
  5. Factor in macroeconomic risks. When interest rates rise, bonds lose value. Interest rate risk is the risk that rates will change before the bond reaches its maturity date. However, avoid trying to time the market; it’s difficult to predict how interest rates will move. Instead, focus on your long-term investment objectives. Rising inflation also poses risks for bonds.
  6. Support your broader investment objectives. Bonds should help diversify your portfolio and counterbalance your investment in stocks and other asset classes. To make sure your portfolio is balanced appropriately, you may want to consult an asset allocation calculator based on age.
  7. Read the prospectus carefully. If you’re investing in a bond fund, be sure to study the fees and analyze exactly what types of bonds are in the fund. The name of the fund may only tell part of the story; for example, sometimes government bond funds also include non-government bonds.
  8. Use a broker who specializes in bonds. If you’re purchasing individual bonds, choose a firm that knows the bond market. Use FINRA BrokerCheck to help find trustworthy professionals that can help you open a brokerage account.
  9. Learn about any fees and commissions. Your broker can help break down the fees associated with your investment.

What are the benefits of investing in bonds?

Bonds offer a host of advantages:

  • Capital preservation: Capital preservation means protecting the absolute value of your investment via assets that promise return of principal. Because bonds typically carry less risk than stocks, these assets can be a good choice for investors with less time to recoup losses.
  • Income generation: Bonds provide a fixed amount of income at regular intervals in the form of coupon payments.
  • Diversification: Investing in a balance of stocks, bonds and other asset classes can help you build a portfolio that seeks returns but is resilient through all market environments. Stocks and bonds typically have an inverse relationship, meaning that when the stock market is down, bonds become more appealing.
  • Risk management: Fixed income is broadly understood to carry lower risk than stocks. This is because fixed income assets are generally less sensitive to macroeconomic risks, such as economic downturns and geopolitical events.
  • Invest in a community: Municipal bonds allow you to give back to a community. While these bonds may not provide the higher yield of a corporate bond, they often are used to help build a hospital or school or that can improve the standard of living for many people.

What are the risks associated with investing in bonds?

As with any investment, buying bonds also entails risks:

  • Interest rate risk: When interest rates rise, bond prices fall, and the bonds that you currently hold can lose value. Interest rate movements are the major cause of price volatility in bond markets.
  • Inflation risk: Inflation is the rate at which the price of goods and services rises over time. If the rate of inflation outpaces the fixed amount of income a bond provides, the investor loses purchasing power.
  • Credit risk: Credit risk (also known as business risk or financial risk) is the possibility that an issuer could default on its debt obligation.
  • Liquidity risk: Liquidity risk is the possibility that an investor might wish to sell a bond but is unable to find a buyer.
  • Stocks tend to earn more money than bonds. In the period 1928-2010, stocks averaged a return of 11.3%; bonds returned on average 5.28%.
  • Bonds freeze your investment for a fixed period of time. For example, if you buy a 10-year-bond, you can’t redeem it for 10 years. This creates the potential for your initial investment to lose value. Stocks, on the other hand, can be sold at any time.

You can manage these risks by diversifying your investments within your portfolio.

References:

  1. https://www.blackrock.com/us/individual/education/how-to-invest-in-bonds

Mindset of Building Wealth

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Your mindset is a set of beliefs that shape how you make sense of the world and yourself. It influences how you think, feel, and behave in any given situation or circumstance. It means that what you believe about yourself impacts your success or failure or happiness or wealth.

Simply, your beliefs shape your mindset. Mindset is a collection of beliefs and thoughts. It is a way of thinking:

“Mindsets are those collection of beliefs and thoughts that make up the mental attitude, inclination, habit or disposition that predetermines a person’s interpretations and responses to events, circumstances and situations.”

According to Stanford psychologist and best selling author Dr. Carol Dweck, your beliefs play a pivotal role in what you want and whether you achieve it. Dweck has found that it is your mindset that plays a significant role in determining achievement and success.

Mindsets can influence how people behave in a wide range of situations in life. For example, as people encounter different situations, their mind triggers a specific mindset that then directly impacts their behavior in that situation.

Your mindset plays a critical role in how you cope with life’s challenges. With a positive growth  mindset, adults are more likely to persevere in the face of setbacks. Instead of throwing in the towel, adults with a positive growth mindset view it as an opportunity to learn and grow.

In short, your mindset not only impacts how you perceive the world around you, but also how you see and believe in yourself and your abilities.

Gratitude Mindset

It’s important to be grateful for everything you have in life. For having a roof over your head, a paying job, a family, a good supply of food and water. Simply, gratitude is the “affirmation of goodness”.

Gratitude is a super power! It has been scientifically proven to be good for your health, your well-being, your building wealth, and your relationships.

Psychology research has demonstrated that practicing gratitude is good for improving your health, your well-being, your building wealth, and your relationships.

We often forget to be thankful for what we have…have a mindset and attitude of gratitude.

If you can be grateful for what you have, you won’t take anything or anyone for granted in your life, and you’ll be wealthier and happier in the long run.

Your mindsets have a lot to do with self-confidence, self-esteem as well as self-development and the desire for self-improvement and being grateful.

References:

  1. https://sourcesofinsight.com/what-is-mindset/
  2. https://www.verywellmind.com/what-is-a-mindset-2795025
  3. https://wealthygorilla.com/15-different-types-mindsets-people/

Warren Buffett’s top 10 rules for success

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Billionaire investor Warren Buffett, “Oracle of Omaha, has a set of rules, principles and philosophies when it comes to making a decision, investing, managing the business and also building success in life. And his success principles can be summarized with the top 10 rules below.

“Don’t be afraid to give up the good to go for the great.” – John D. Rockefeller.

  1. Find Your Passion. Almost every successful person agrees that finding and following your passion is something important if you want to produce an amazing result in life. There is no guarantee that you will be able to find your passion in your first job, but you have to keep digging until you find it. Steve Jobs once gave a commencement speech at Stanford University and said: “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.” The only way you can produce outstanding work is through passion. Without passion, you will do things with the half-hearted approach and there is no way you can become the best this way. Thus, find your passion, do what you love and you will be able to produce amazing success in life when you do.
  2. Hire Well. If you want to be a billionaire, there is no way you can go about it all by yourself, you need to have a great team. And to have a great team, you must learn to hire well. Always remember that you cannot succeed alone in this world. You need other people’s help to bring you the success you want. And your people will be your greatest assets. According to Buffett, he emphasizes on 3 qualities when he hires, and they are, integrity, intelligence, and energy. Buffett also said that out of those 3 qualities, integrity comes first. He also jokingly said that you do not want to hire someone who has no integrity but has a lot of intelligence and energy. Integrity comes first. Without integrity, other qualities do not matter much
  3. Don’t Care What Others Think. It is important not to care what others think. And this is extremely important because you do not want to take into consideration what other people have to say, because you will be influenced and will never be able to hold onto your investing principles. If you was to listen to what others said, he will become like most people, living an average life. When it comes to achieving the success you want and living your dreams, there will be people telling you that achieving what you want is impossible and simply suggest you get a real job. Never listen to the naysayer. You have to follow your heart and do what you think is right. Circle of Competence” is what he has used as a way to focus his investment on only operating in areas he knew best. The concept basically explains that every one of us has developed useful knowledge on certain areas, and what we need to do is to operate in these areas that we are good at. When you care too much about what others think and say about you, you will restrict your own freedom and it will prevent you from living your best life according to your own terms.
  4. Read, Read, Read – The more you read, the smarter you will get and the more knowledge you will gain. When you become more knowledgeable, you will be able to make a better decision that will lead you to the success you want. Highly successful people are great readers and you have to adopt the same habit. Commit to reading every single day. If you find that you are busy and do not have much time to read, start small and read for 15 minutes a day. If possible, go for more. Read at least an hour a day. You can wake up earlier and make time for reading or you can make good use of your commuting time for reading. You need to be a lifelong learner and when reality changes, you need to change and adjust you strategy.
  5. Have A Margin of Safety – The concept of “margin of safety” is easy to understand, and requires great discipline and patience.  Buffett uses the metaphor of driving across a bridge to explain this concept. When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. You have a margin of safety of 20,000 pounds. And when it comes to investing, you will never buy a business worth $50 million for $60 million. You will buy the business worth $50 million at a price below that to ensure there is a margin of safety. This concept is essential in the principle of value investing. It helps investors make better and wiser decisions before jumping into buying a stock. When an opportunity is presented, evaluate using the margin of safety concept before you decide.
  6. Have A Competitive Advantage – Buffett said that capitalism is all about somebody coming in and trying to take the castle. And what you need for your castle is a moat to protect your castle from your enemies. In the business world, your business needs to have a durable competitive advantage to survive for the long term. Today, the competition is tough and people can copy exactly what you do and produce the same product and put you out of business. This is why having a competitive advantage to protect your business like a moat protecting a castle is important. Buffett said that he will invest in businesses that have a competitive advantage because he wants to make sure that the business will still be around after years down the road.
  7. Schedule Your Personality – Build your business around your personality. In order to succeed in what you do; you must find your pace and your sweet spot so that you will enjoy your work and perform at your best. Buffett loves reading and he chooses to read to improve his knowledge, and then he acts as the strategist and manages his business from backstage. He organizes his business according to his personality. If you love drinking a cup of coffee before you start your work, do it. Organize your workspace according to your own taste, that will make you more productive. The key is to play to your strength and personality so that you can become the best at what you do.
  8. Always Be Competing – Buffett believes that one of the most common business killers is complacency. When people fall into their comfort zone and fail to improve their competitiveness, their businesses will eventually fail or be taken over by the competitor. And to stay ahead of the game, you must always be competing. Every business has problems in every industry. The key to making a business thrive is its ability to compete and stand out from the rest. And this is why you invest in a business that continues to thrive because you are always competing. Therefore, never rest on your laurels, keep competing, keep improving and innovating in your business.
  9. Model Success – There is no way you can succeed alone in this world. If you want to achieve great success in life, you need others. and, you must model other successful people, or better yet, get yourself a mentor. Take a look in the sports industry, every outstanding and professional athlete has a coach. Tiger Woods has a coach. Michael Jordan has a coach. You need a coach to guide you on the journey to success. Your coach can also remind you of your goals and inspire you to do your best. In business, having a mentor is said to be one of the most important keys to success. Success leaves clues and what you need to do to produce a great result is to model the success of others. Learn and study from others, and then learn, grow and improve yourself to become better.
  10. Give Unconditional Love – Finally, the most powerful force in this world is unconditional love. And everyone who wants to achieve success in life gives unconditional love.
  11. Bonus: Power of Compounding – “The power of compounding your money inside a successful business for a long time is nearly unmatched in capitalism.”

The final rule for success by Warren Buffett has a lot to do with your personality and beliefs. Being a philanthropist, Buffett believes in helping society and giving back to the world. This could be the reason why he has been so successful. He is always looking to help and to give, rather than to take. When you operate in a giving and grateful mindset, you will put your customers first, and this is what makes a business enterprise thrive

Source:  https://www.thewisdompost.com/billionaires/warren-buffett/warren-buffetts-top-10-rules-success/1575

The Golden Rules to Building Wealth

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Building Wealth, along with good health and emotional well-being, can be viewed as an important component for a happy life.

However, it is important to remember that wealth cannot by itself buy or guarantee happiness or love, but it can help us get peace of mind. It can offer us the freedom to do what we enjoy (which can lead to happiness), and let us take care of our physical, emotional and mental well-being.

Wealth means having enough personal capital to achieve financial freedom, to do what you want, when you want.

Here are three keys to successfully building wealth:

    • Wealth Building Mindset: Life is measured by the value we create for others –our family and friends, stakeholders, and society at large – and the useful things we do in life. For instance, Warren Buffett still makes a lot of personal wealth each year but donates 99 percent of it to the Bill and Melinda Gates Foundation. Wealth gives us the freedom to make the world (or even a tiny portion of it) better. It enables us to let our family members live a life of comfort. Yet, creating wealth is not an end in itself, but a means to an end, which is to make life better for ourselves and others and for making an impact in the world.
    • Continue to learn and grow (know your “circle of competence”): Just because you invested in the market doesn’t mean the market is obligated to generate wealth for you. It’s your duty to improve yourself continuously. The best ways to do this are to study the history of investing, to learn the strategies of successful investing and to sharpen your circle of competence. The market functions to an extent like Nature does – according to its own rules, regulations, laws and sentiment. It’s your duty to build the required skills to succeed in the market and build your “circle of competence,” a term coined by Warren Buffett. In his 1996 letter to shareholders, Buffett explained: “You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.” A circle of competence is a subject area that matches our skill or expertise. To be successful, we must leverage it, which means we must focus on depth in specific areas that we understand well instead of superficial breadth. Understanding your circle of competence helps you avoid problems, learn from others, and make better decisions. That’s when the market yields to you and lets you generate wealth.
    • Mindset, Focus, Patience and Discipline are quintessential traits: The market is volatile and will always remain volatile. And, you won’t last in it ifii you cannot handle the market’s volatility and manage your emotions. Doing this means reining in knee-jerk reactions and instead, building long-term perspectives and sticking to them. This is why mindset, focus, patience and discipline are your best friends if you want to generate long-term wealth. You must become immune to impulsive emotions of fear and greed, learn to temper the craziness around you, and to focus on the long term. When you learn to rein impulsive emotions, you build: 1) The astuteness to identify valuable businesses worth investing in, 2) The discipline to buy them at attractive prices, and, 3) The wisdom to stay the course when the majority of the market changes direction impulsively.

It’s been the patient, disciplined and focused on the long term investors that has had the best success building wealth over the long term

References:

  1. https://www.smevalueadvisors.com/blog/index.php/wealth-creation/

10 Rules of Success According to Oprah

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Oprah Winfrey is known as one of the most successful individuals globally and her estimated net worth is almost $3 billion! To her degree of success and power, it took a lot of perseverance and wisdom.

Here are the ten rules of success according to Oprah Winfrey.

  1. Rather than overwhelming yourself with the big picture, ask yourself what the next right move is. It’s easy to feel intimidated by everything on your plate, so instead of facing such an enormous proposition, take things one step at a time. Make the best next move you can, then make the next move, and then the next one, each time going as carefully and as thoughtfully as you can. Success isn’t one giant leap — it’s a series of baby steps. And, if you make one misstep, understand that your life and your career won’t be defined by that one mistake. You have more steps to take, and you’ll arrive at success eventually.
  2. When you see an opportunity, take it. Success has been a result of grace and blessings, but there’s also been opportunity. The key to being successful is to recognize when opportunity is in front of you and seize it.  “Luck is preparation meeting the moment of opportunity,”
  3. Forgive yourself for your past mistakes. You’re not the person you were five, ten, twenty, or more years ago. A lot of wisdom just comes with age, so don’t beat yourself up for youthful transgressions. You didn’t know any better — but you know better now! Look at those past mistakes as teachable opportunities, learn as much as you can from them, and then move forward.
  4. Never stop improving yourself. This means continually working on your personality, your skill set, and your network so that you are in the best possible position to make a difference. You always need to be improving if you want to get ahead. If people are saying that about you, take it as a compliment. You’re doing a lot, and others are noticing.
  5. Go as hard as you can. Recognize and take responsibility that you have control only over your own performance. You can’t control what others are doing. All you can do is the best you know how, all the time. It’s like a race: you just run hard until you read the finish line, and all you can do is make yourself run more quickly, not make your competition run more slowly. That’s what brings you success: building yourself up, not looking behind you to see where your competition is.
  6. Don’t just dream — believe. It’s OK to have big dreams for yourself; we all do. But if you’re going to be successful, you’ve got to do more than dream. You have to believe that the life you aspire to lead will one day be yours. Winfrey always knew that she would live a big, fulfilling life; she had that strong belief in what her future held. Do the same, and hold firmly to that belief, even in the most difficult of times, and you’re likely to get exactly where you want to be.
  7. Remember that people are more alike than they are different. We’re all seeking the same thing, We all want to reach our fullest potential. Sure, we all go about that in different ways, because we all have different skills and different passions, but at the end of the day, we all just want to be true to ourselves and be, the “truest expression” of ourselves.
  8. Find your purpose in life. If you’re going to be successful, you need to figure out why you’re here on Earth. Most entrepreneurs already feel like they know their purpose, but if you don’t, stop! Put everything on pause, take some time for genuine soul searching and self-reflection, and find your purpose. Find your why!
  9. Keep yourself grounded and centered. It’s easy to get lost in your work, and it’s easy to let your ego inflate, but if you keep your focus, stay compassionate, and always seek to understand and connect with others, you’ll improve your chances of success substantially.
  10. Try to remember that everything will be OK. If you’re aiming for big time success, you’ve got to be patient and take the long view. Yes, it’s natural to be a little scared, but never lose faith that everything will work out just fine.

Source:  https://moneyinc.com/10-rules-success-according-oprah-winfrey/

Nicotinamide Riboside

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Nicotinamide adenine dinucleotide (NAD+) is a coenzyme found in every living cell in your body.

Nicotinamide riboside fuels your body from within.

Your health starts with your cells. Everything you do in life depends on the constant cycle of using and regenerating energy throughout your cells. Scientists have known for decades the importance of a coenzyme (a molecule that binds with proteins) called NAD+ (nicotinamide adenine dinucleotide) plays a vital role in the processes of your body. NAD+ helps create cellular energy and support cellular repair throughout your trillions of cells—and organs—throughout your body.

NR to NAD

Your NAD+ supply declines with age as well as in response to stressors on your body including alcohol consumption, intense exercise, and lack of sleep. However, in 2004, Dr. Charles Brenner discovered a naturally-occurring vitamin in milk called nicotinamide riboside. This micronutrient increases NAD+ levels by 40-50%.

While nicotinamide riboside can be found naturally in certain foods, you cannot get anywhere near the amount you need through a normal diet to effectively increase NAD+.

A coenzyme is a small non-protein molecule that works with an enzyme to speed up a specific chemical reaction.

Coenzymes and enzymes are like two peas in a pod. You have thousands of enzymes in your body, each working as a catalyst for a different biological function.

For example, amylase (saliva) breaks down carbohydrates into smaller molecules in order to be easily digested by your stomach and small intestine.

However, enzymes don’t just break down molecules. They help build molecules as well. You see one of the best examples of this in cellular energy production, where important enzymes work alongside NAD+ to help produce your body’s energy.

Why is NAD+ important?

NAD’s primary function is in your cells’ mitochondria. Mitochondria are often called ”the powerhouse of the cell.” They earn this nickname because of their ability to produce energy for all of your cellular functions. 90% of your body’s energy is made from your mitochondria.

NAD+ is the ignition to these continuous power turbines, the mitochondria. They help kickstart your “cellular engines.”

Without it, cellular energy production would come to an abrupt halt. You need NAD+ to keep you breathing air into your lungs and pumping blood into your heart.

How does NAD+ help in energy production?

There are several ways your cells and mitochondria produce energy. However, the most efficient way is a process called the electron transport chain.

NAD+ loosely binds with the mitochondrial enzymes through covalent bonds.But this bond is temporary, breaking after NAD+ transfers electrons with the enzymes.

These electrons help catalyze a chemical reaction, triggering the production of cellular energy. It’s called a chain because multiple enzymes work together like an assembly line, passing the electrons down to the following enzyme.

NAD+ participates in this process by acting as a delivery mechanism, donating and accepting negatively-charged electrons to and from several enzymes that sit patiently in the mitochondrial membrane.

NAD+ essentially powers your mitochondria. Without it, the electron transport chain would not start. Like an abandoned factory, the enzymes in the mitochondrial membrane would remain unused and barren.

How does NAD+ help in cellular repair?

NAD+ has other roles with other enzymes in the cell as well. For example, sirtuins and poly (ADP-ribose) polymerases (PARPs) are classes of enzymes that require NAD+.

Sirtuins are the regulators of the cell, while PARPs play an active role in DNA repair.

Things like overeating, drinking, lack of sleep, lack of exercise, can all cause damage to your cells. Your sirtuins and PARPs are vital to repair the damage.

How do we get NAD?

Coenzymes are either naturally created in the body or provided in the form of vitamins. However, not all vitamins are treated the same.

Some vitamins, like folic acid and vitamin Bs, help the body produce coenzymes by providing the building blocks to construct them.

Other vitamins like Vitamins C and E require no assembly; they act on their own, in this case, as antioxidants.

NAD+ is naturally produced by every cell in your body. Methods such as fasting and exercise can increase the production of NAD.

But NAD+ gets its primary building material from foods with vitamin B3. Cow’s milk, mushroom, fish, green vegetables, and yeast are all sources of vitamin B3 that can help construct more NAD+ in your body.

NAD+ is not a great standalone supplement.
Direct supplementation of the molecule NAD+ is only modestly effective due to its inability to enter cells directly.

A paper in the Journal of Nutritional Science and Vitaminology shows that your body breaks orally administered NAD+ down to smaller molecules in order to be used.

Once in the cell, they will need to be reassembled again. This breakdown and reassembly require extra energy and time, making direct supplementation of NAD+ an inefficient way to boost your body’s NAD+ levels.

Taking vitamin B3 is the best way to boost NAD+ levels.

The best way to increase your NAD+ is through vitamin B3 supplements. Vitamin B3s are NAD+ precursors, meaning they are smaller molecules used as building blocks to create NAD. There are three main forms of vitamin B3: niacin, nicotinamide, and nicotinamide riboside (NR).

  • Niacin (NA), the earliest form of vitamin B3 used for commercial purposes, is the easiest to find and is most commonly found. However, niacin isn’t the most favorable vitamin B3 because it can cause the unwanted side effect of flushing (redness of the face) at high doses.
  • In contrast, nicotinamide (NAM) has no visible side effects. But a study published in the Journal of Biological Chemistry shows nicotinamide inhibits sirtuins, an important class of enzymes that promote cellular repair.
  • Nicotinamide riboside (NR) is the latest addition to the vitamin B3 family. Although related, NR is structurally and biochemically different from niacin and nicotinamide.

NR’s novel discovery as a vitamin became a critical turning point in NAD+ research because of its unique property of elevating NAD+ levels far more efficiently than its vitamin B3 predecessors.

To date, NR reports no attributable adverse effects during published clinical trials.

References:

  1. https://www.truniagen.com/science/
  2. https://www.truniagen.com/blog/science-101/what-is-nad/
  3. https://www.truniagen.com/blog/our-ingredient/is-nicotinamide-riboside-really-an-anti-aging-supplement/

Longevity and Healthy Aging

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Aging, the world’s leading cause of death, is responsible for over two-thirds of deaths globally—more than 100,000 people every day. ~ Wired Magazine

The chief risk factor for most of the modern world’s leading killers is the aging process: Cancer, heart disease, dementia, and many more health problems become radically more common as people get older, according to Wired Magazine.

It’s common knowledge that factors such as smoking, lack of exercise, and poor diet can increase the risk of chronic diseases, but these are relatively minor compared to aging. For instance, having high blood pressure doubles your risk of having a heart attack; being 80 rather than 40 years old multiplies your risk by ten. As the global population ages, the magnitude of death and suffering caused by aging will only increase.

The goal of longevity and healthy aging is to slow down the hands of the biological aging clock with specific interventions and, in some cases, to reverse the biological aging clock.

Biological age is different from chronological age. It is a measure of the body’s ageing, based on the effectiveness of the mechanisms that keep cells young and on markers of the functionality of organs and apparatus.

There are epigenetic mechanisms that can repair DNA damage, increase longevity and reduce the risk of disease.

Studies conducted in recent years in the field of the biology of aging and longevity suggest that we can reach an advanced chronological age without getting old biologically.  We can age chronically without losing our physical and cognitive abilities, maintaining our current level of performance and, perhaps, recovering what we have lost.

References:

  1. https://solongevity.com/en/longevity-news/biological-age-is-not-based-on-years/
  2. https://www.wired.com/story/drugs-aging-medicine-biotech/

Cryptocurrency are Frauds

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Almost a quarter of new cryptocurrencies launched in 2022 exhibited characteristics of “pump and dumps”—a form of fraud—according to new analysis from blockchain intelligence group Chainalysis.

Pump and dump tactics have a long history in the stock market, where they are a form of securities fraud.

In “pump and dump”, investors will hold a stock and promote it to pump the price, and then dump it at inflated levels on unsuspecting investors who buy in on the hype before it all comes crashing down.

This is a classic example of the “The Greater Fool Theory”.

References:

The 10-Year Treasury Bond Yield

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The 10-year Treasury bond yield is closely watched as an economic indicator of broader investor confidence.

An economic indicator is a piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities, according to Investipedia. .

This 10-year bond signals investor confidence. The U.S Treasury sells bonds via auction and yields are set through a bidding process.5 When confidence is high, prices for the 10-year drop and yields rise. This is because investors feel they can find higher-returning investments elsewhere and do not feel they need to play it safe.

But when confidence is low, bond prices rise and yields fall, as there is more demand for this safe investment.

This confidence factor is also felt outside of the U.S. The geopolitical situations of other countries can affect U.S. government bond prices, as the U.S. is seen as safe haven for capital.

  • BecauseTreasury securities are backed by the U.S. government, They securities are seen as a safer investment relative to stocks.
  • Bond prices and yields move in opposite directions—falling prices boost yields, while rising prices lower yields.
  • The 10-year yield is used as a proxy for mortgage rates. It’s also seen as a sign of investor sentiment about the economy.
  • A rising yield indicates falling demand for Treasury bonds, which means investors prefer higher-risk, higher-reward investments. A falling yield suggests the opposite.

Changes in the 10-year Treasury yield tell long-term investors a great deal about the economic landscape and global market sentiment. Professional investors analyze patterns in 10-year Treasury yields and make predictions about how yields will move over time.

Declines in the 10-year Treasury yield generally indicate caution about global economic conditions while gains signal global economic confidence.

Prices (and therefore effective yields) change for bonds almost constantly. That’s because a bond’s price is inversely related to yield: When demand is high and Treasury prices rise, yields fall—conversely, when demand is low Treasury prices fall and yields rise. This ebb and flow ultimately creates the Treasury pricing market as people flock to (and then from) Treasuries based on the economic environment they find themselves in.

It’s important to remember, all U.S. Treasury securities are regarded as risk free—since they’re backed by the full faith and credit of the United States government, which has never defaulted on its debts.

When investors get worried about the economy and market risk, they look for safe investments that preserve capital, and Treasuries are among the safest investments out there.

One of the foundational principles of finance is that risk and return are correlated. When markets are booming and the economy is expanding, the appetite to take on risk and generate returns is high. Risk-free Treasuries become much less appealing because of their lower returns. Demand declines and Treasury notes sell at less than their face value.

References:

  1. https://www.forbes.com/advisor/investing/10-year-treasury-yield/

Half of Americans Say They Are Worse Off – Gallup

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According to a new Gallup poll, 50% of Americans say they are worse off than a year ago, compared to only 35% who say better.

When Americans take the time to reflect on their personal financial situations compared to a year ago:

  • 35% of Americans say they are better off now than they were a year ago,
  • 50% of Americans say they are worse off now than they were a year ago
  • 14% of Americans say that their finances are  “the same” as last year.

(Per Gallup: Lower-income is defined as having an annual household income less than $40,000. Middle-income is defined as having an annual household income between $40,000 and $99,999. Upper-income is defined as having an annual household income of $100,000 or more.)

These financial self-assessments are the worst since Great Recession era and since Gallup first asked this question in 1976. It has been rare for half or more of Americans to say they are worse off, states Gallup’s Jeffrey M. Jone . The only other times this occurred was during the Great Recession era in 2008 and 2009.

Gallup regularly tracks Americans’ ratings of their personal financial situation as getting better or worse, as well as their views on whether the economy is getting better or worse.

Currently, more than four in five U.S. adults rate economic conditions in the country as only fair (38%) or poor (45%), with few describing conditions as excellent (2%) or good (15%). Furthermore, 72% of Americans say the economy is getting worse, 22% say it is improving, and 4% think it is staying the same.

The results are based on a January 2-22 Gallup poll. They follow a year of persistent high inflation, with the highest inflation rates since 1982. Stock market values declined and interest rates rose in 2022, but, on average, personal wages have increased.

In both 2021 and 2022, Americans were evenly divided between saying they were better off versus worse off, including a 41% to 41% split in last year’s survey.

High inflation and other challenging economic factors have not dampened Americans’ expectations about their financial situations in the year ahead. Sixty percent expect to be better off a year from now, while 28% predict they will be worse off.

High inflation, rising interest rates, and declining stock values in 2022 all likely took their toll on Americans’ financial situations, with half saying their situation got worse in the past year, Jones writes.  Lower-income Americans, who have consistently been most likely to report that higher prices are causing them financial hardship, are particularly inclined to say they are financially worse off.

References:

  1. https://news.gallup.com/poll/469898/half-say-worse-off-highest-2009.aspx
  2. https://news.gallup.com/poll/468983/cite-gov-top-problem-inflation-ranks-second.aspx