Are you ready to start making money? Want to know what to buy first, and how much?
We all know that markets move up and down and can be unpredictable at times. Because of this, we want to keep your portfolio as safe as possible during potentially volatile periods, while also giving you opportunities to make the best profits possible.
That's why there are a number of things we do here at Money Morning to protect and add to your portfolio.
#1: Staying Where the Big Growth IsThe companies capitalizing on global growth are emerging as the world's leading profit machines at the fastest clip in history. More than 30 of the 50 biggest, most profitable companies in the world are now based outside of the U.S.
According to renowned economist Antoine van Agtmael - the man who first coined the term "emerging markets:" "Every 22 days, a new company outside of the United States generates a billion dollars in sales for the first time."
It's a fact that no investor can deny today - yet only a savvy few will be able to capitalize on it.
At Money Morning, we're not "anti-U.S. markets," we just follow the growth wherever that may lead us, from Singapore to Peoria.
The one thing ALL financial growth has in common today is that the forces of globalization are creating the best opportunities. And we're committed to following that growth.
#2: Focusing on the Biggest IncomeNothing is better than buying a stock and watching the price soar upward. But the fact is stock-price appreciation is a relatively new (and much less predictable) way to make money in equities.
In times like these, the smart investor also focuses on dividends and income - securities that pay outsized rewards.
And that's what we've been doing - and will continue to do.
Earning a good yield on your investment is crucial. And the fact remains... history shows dividend paying stocks surpass non-dividend ones by as much as 25 to 1. Over the long run, as much as 97% of total stock market returns are due to dividends.
Plus, in rocky markets, dividend payers really outperform. They build up a thick layer of financial armor around your portfolio and guarantee a stream of cash.
#3: Building a "Structured" PortfolioWe've developed an "investment pyramid" using our tried and true 50-40-10 structure.
Let's take a quick look at how it works... and how using it can help you develop a more effective portfolio and better manage your downside.
Think of your entire portfolio as the investment pyramid. It is divided into three unequal parts:
- Base Builders make up 50% of your holdings and are generally dividend-and-income investments. In fair to outstanding markets, these investments can increase 20% or more, and many will pay healthy, reliable dividends. This is the base of the pyramid, the foundation of your portfolio, providing balance and stability, especially in bearish markets.
- Global Growth & Income investments make up the middle 40% of your pyramid. These include stocks and other investments in the ultra-bullish energy and commodities sectors. Many of these returns come from emerging markets in developing nations.
Rocket Riders should make up just 10% of your investments. These are hyper-growth holdings that will generate massive profits in the long run. Such as emerging market investments, hot IPOs, turnaround plays, and other such opportunities that usually include volatility and risk. That's why, even though Rocket Riders are huge profit plays, they only make up a small portion of the pyramid.
The bottom line: A solid structure protects your downside... but still allows you to capture the huge gains that can lead to an early retirement.
Few in the markets understand just how powerful this system can be - and even fewer understand just how to use it.
And don't forget...
Global trends always keep the odds in your favor.
Keep an eye out for stock recommendations and more ways to build your portfolio in upcoming Money Morning reports.