What's next in the housing market? Is this market pullback temporary?
Good news in Crypto! And why positive arbitrage is so important to understand.
👋 Hello Everyone.
Why mindset plays a crucial role when it comes to building wealth. And the key takeaways:
A positive and focused mindset can significantly impact your financial success. Here's why mindset is important and how it can influence your journey to wealth building:
Belief in Possibility: A positive mindset helps you believe that building wealth is possible. When you have faith in your ability to achieve your financial goals, you're more likely to take consistent action and persevere through challenges.
Goal Setting and Planning: A wealth-building mindset encourages you to set clear financial goals and create a well-defined plan to achieve them. This proactive approach helps you stay organized, motivated, and aligned with your objectives.
Resilience in the Face of Challenges: Building wealth often involves setbacks and obstacles. A resilient mindset helps you navigate these challenges without becoming discouraged. Instead of seeing failures as roadblocks, you'll view them as learning opportunities.
Long-Term Perspective: Wealth building is a long-term endeavor. A patient and long-term mindset helps you resist the urge to make impulsive decisions and instead make choices that align with your overarching financial objectives.
Learning and Adaptation: A growth mindset encourages continuous learning and adaptation. In the world of finance, staying informed about market trends, investment strategies, and personal finance is crucial for making informed decisions.
Risk Management: A balanced mindset helps you manage risk effectively. You'll be more likely to make calculated risks rather than reckless gambles, which is essential for preserving and growing your wealth over time.
Delayed Gratification: A wealth-building mindset promotes delayed gratification. You'll be more inclined to make sacrifices and invest in your future rather than pursuing short-term pleasures that might hinder your financial progress.
Financial Discipline: Discipline is crucial for managing money wisely and avoiding unnecessary expenses. A disciplined mindset helps you create and stick to budgets, save consistently, and invest sensibly.
Entrepreneurial Spirit: For those engaged in business ventures, an entrepreneurial mindset fosters innovation, creativity, and the ability to identify opportunities that can lead to wealth creation.
Positive Habits: Mindset shapes habits. By cultivating positive financial habits like regular saving, smart spending, and consistent investing, you'll lay a strong foundation for wealth building.
Mindset of Abundance: A mindset of abundance focuses on opportunities and solutions rather than limitations. This mindset can attract positive financial outcomes and encourage you to think creatively about wealth-building strategies.
Empowerment and Control: A wealth-building mindset empowers you to take control of your financial future. You'll feel more in charge of your decisions, which can reduce financial stress and increase confidence.
In essence, a positive mindset contributes to making informed decisions, staying focused on your goals, and persisting through challenges. While mindset alone cannot guarantee financial success, it significantly influences your behaviors, decisions, and attitudes, all of which are essential components of successful wealth building. Trust me if you have your mindset right and take action the possibilities are endless.
📣 What is the positive arbitrage (on your money) and why is it important in your wealth building journey?? Dave Ramsey really needs to read and understand this!
Positive arbitrage, also known as risk-free arbitrage, involves taking advantage of price discrepancies to generate guaranteed profits with little to no risk. Here are five ways to potentially achieve positive arbitrage when building wealth:
Currency Arbitrage: Currency markets often present opportunities for arbitrage due to fluctuations in exchange rates. By buying and selling currencies at different rates across various platforms or foreign exchange markets, you might be able to generate risk-free profits. (this can work well in currencies and crypto)
Interest Rate Arbitrage: Take advantage of interest rate differentials between different financial instruments or markets. For instance, you could borrow money at a lower interest rate and invest it in instruments with higher yields, capitalizing on the interest rate spread. This one is 100% the most important to understand when related to wealth building. Example: You have a 3% interest mortgage and have a cash injection coming in and you could pay it off. With positive arbitrage you would invest the cash and make say 8% and keep making the payments on the mortgage and you benefit from the 5% of positive arbitrage.
Merger Arbitrage: In the context of corporate mergers or acquisitions, there can be price disparities between the target company's stock price and the acquisition offer price. Buying shares of the target company at a lower price and profiting from the price convergence upon completion of the merger can be a form of arbitrage.
Convertible Arbitrage: This strategy involves taking advantage of price disparities between a company's stock and its convertible securities (like convertible bonds or preferred shares). By simultaneously buying the convertible security and short selling the underlying stock, you can profit from the price convergence.
Statistical Arbitrage: This strategy involves identifying and capitalizing on mispricings between related securities or indexes based on historical statistical relationships. Advanced quantitative models and algorithmic trading can help execute this strategy efficiently.
Understanding the one simple fact - that if you can borrow money for a lower rate than what you can make with it is one of the key strategies of leverage that the rich use to get richer.
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🎙️ I am also really excited about how quickly the podcast has grown. So thank all of you that have downloaded and given it a listen. We have climbed the charts very rapidly and we are currently ranked #5…For those of you that have not stopped by it is the Rich Habits podcast on Spotify and Apple. And please feel free to DM me or message on any platforms and let me know your thoughts and takeaways.
For all PAID community members please note that the private livestream is now being held on ZOOM and its awesome. It is scheduled every Thursday @ 7pm EST. This is so exciting and will add so much more personal/community interaction. So buckle up and let’s have some fun.
💸 Show me the MONEY!!!!! Where are the most profitable sectors moving forward for investors - regardless of a recession or a small bump in the road.
Real Estate: I know I know there is just so much bad news with interest rates, prices and in some cases inventory levels. But real estate is a very diverse sector with a lot of options. My thoughts for great opportunities moving forward are 1) affordable housing. Think retrofitting a mobile home park with tiny homes or renovating an old building or schoolhouse into efficiency apartments. I love these option and I am personally working daily on finding a great project in these alternative real estate sectors.
Artificial Intelligence: Yes I have been pushing this agenda for almost a year and yes there has been a slight pullback in recent days but I still believe this will be the leading sector of growth among stocks and index funds for the next few years. I still like Nvidia, AMD, Micron, C3, Meta, Tesla and Palantir.
Cryptocurrency: I believe crypto will continue gaining momentum and mass adoption in the coming months and really get into full bull market mode by the time the Bitcoin halving comes around in the Spring of 2024. So I will continue to dollar cost average into Bitcoin, Etherium, Chainlink, XRP, XLM, Quant and some high flyers (like Bitrock) as they come across my desk. So keep crypto top of mind and only invest if you understand the disruption and why it will be a tremendous sector for investing in the coming years.
😭😭 Where are the markets heading and is this pullback temporary?
2023 is a pre-election year, which is the strongest year out of the 4-year Presidential Cycle. Another bullish data point is the notion that dating back to World War II, there has never been a recession in a pre-election year.
Given that we had a nasty bear market last year, it was difficult to see the light at the end of the tunnel. But those that knew their market history were incorporating a high probability that things would soon turn around. Dating back to 1962, a greater than 25% bear market was followed by an average gain of 38% in the following year.
Furthermore, strong gains in the first half tend to be followed by further, albeit smaller, gains in the second half. Since 1950, when the S&P 500 has risen 10% or more in the first half, the second half has been positive nearly 82% of the time with an average gain of 7.7%. The historical statistics point to the idea that this will be a ‘buyable’ market pullback.
So although pullbacks in the market may seem scary I don’t believe we will see continued losses over the coming months. Volatility can be unsettling but the long terms numbers are in our favor. So we will keep adjusting and making the right moved to optimize our gains over time.
🤔 Whats next in the housing markets and what to expect with mortgage rates moving forward???? Some key takeaways:
Where are mortgage rates heading from here? To get some clues, Fortune tracked down mortgage rate forecasts from nine leading research firms. However, it's important to acknowledge that predicting future mortgage rates is a challenging task, and recent history has shown that mortgage rate forecasters have struggled.
The Mortgage Bankers Association: The D.C.-based trade group projects that the 30-year fixed mortgage rate will average 5.9% in Q4 2023. Beyond this year, the group expects mortgage rates to slide to 4.9% by Q4 2024.
Morningstar: Economists at Morningstar project that the average 30-year fixed mortgage rate will average 6.25% in 2023, 5.0% in 2024, and 4.0% in 2025.
Goldman Sachs: The investment bank projects that the 30-year fixed mortgage rate will end 2023 at 6.4%. In 2024, Goldman Sachs expects the 30-year fixed mortgage rate will average 5.9%.
The National Association of Realtors: Economists at NAR forecast that the 30-year fixed mortgage rate will slide to 6.4% before the end of 2023, and then to 6.0% in 2024.
These are just a few of the predictions. As you can see they are all pretty close and reflect a downturn in rates that could come at the right time.
So let’s address the elephant in the room - Is it a good time to buy a home? My key thoughts are:
Is it a good time for you to buy a home? Everyones situation is different so its what is best for your current financial outlook. Remember prices are flattening out if not dropping (a good thing), Interest rates are going back up (a bad thing) but with prices dropping and less competition for each home (area dependent) you might be able to scoop up that dream home for way less than say 2021-22. And remember you can always refinance when rates drop.
So its time to really analyze the math and the conditions of the market with respect to your situation and not based on what you read on Instagram. Because just like the stock market - it’s tough to time the markets. So if you wait and mist the downturn in prices you could find yourself paying above asking price like it was just a short time ago.
👂👂 Have you been following the crypto news? So many amazing updates relative to adoption and whats next !!!!
Here are a few of the key takeaways:
In a groundbreaking announcement, e-commerce titan Amazon has confirmed its partnership with Ripple, integrating the use of XRP for its payment transactions. This collaboration signifies a monumental shift in the e-commerce landscape, as Ripple’s XRP promises to offer swifter and more efficient payment solutions for Amazon’s vast global clientele. The integration of XRP into Amazon’s payment system underscores the growing acceptance and mainstream adoption of cryptocurrencies. As one of the leading digital currencies, XRP is poised to provide Amazon users with seamless, rapid, and cost-effective transactions, enhancing the overall shopping experience.
A spot Bitcoin-backed exchange-traded fund (ETF) will not be approved in the US until at least 2024 when the election is over, according to a former SEC official.
Writing on social media platform X this weekend, John Reed Stark, a former chief of the SEC’s Office of Internet Enforcement, said he does not expect much to change with regards to crypto enforcement action this year, and that a spot ETF approvals will have to wait until next year - This is just one source and I do not agree with this but felt it was compelling enough to share.
Paypal announces stablecoin launch: Given the ongoing lack of clarity as to how stablecoins should be audited, not to mention the disclosures and reporting that should accompany these instruments, launching a brand-new coin might seem risky. That might be true, but it is also exactly what PayPalPYPL +2.1% has done. On August 7th Paypal announced it would be launching its own native stablecoin (PYUSD) to be used in transactions between both merchants and customers. On the surface this might appear to be an unusual move for a company whose core business is processing fiat transactions, but that overlooks the reality that PayPal has long been involved in the crypto sector. Beginning with partnerships with the crypto sector going back to 2014, PayPal allowed customers to buy and sell certain select crypto assets on the platform, which then evolved into allowing certain payments to be made in these select crypto assets.
One of the most powerful effects of PYUSD might not have anything to do with the token itself, but the ripple effects that the token will have on the crypto regulatory landscape at large. In the context of institutional crypto, the launch of PYUSD – by one of the most recognizable and commonly used financial payment processors in the world – could be the impetus regulators need to move on stable coin regulation.
These are just a few of the highlights we are seeing throughout the crypto markets. So keep your eye on the prize and DCA into the projects you deem most promising.
Weekly Book Excerpt (“The Person who turns over the most rocks wins the game”) Beating The Street - Peter Lynch
This quote has always resonated with me for some reason. And when in my thirties an older gentlemen that was at my restaurant said to me “Robert you have to be in it to win it”…I feel the 2 quotes are very much the same message and have definitely stuck with me over the years.
What does it mean to me? And how does that translate here today for you - That I see to many people giving up way to soon in their entrepreneurial and financial journeys, due to a few hiccups. Life is a numbers game and all the good stuff is usually outside of your comfort zone. So always remember that through every failure or downturn is a lesson to help you on the next part of your conquest.
Money Mindset - Weekly insights
Have you tried Acorns yet. I know you all have heard me talk about this awesome platform for years but now I am officially working with them and I couldn’t be more excited. If you haven’t used Acorns yet its a must in your wealth building journey. Even if you use it just for the roundup feature.
How it works - You simply attach your bank account and set the rate of risk you want in your portfolio and Acorns does the rest by rounding up your daily purchases and investing those funds. It’s such a great investment tool because it is automated and just a few cents at a time. It’s like found money.
Brand of the month - Dun & Bradstreet
I am excited to add Dun & Bradstreet to my portfolio of companies that I proudly represent. A DUNS number is so important to the success of your small business. So if you have not applied for one please read up so you can understand the importance of it. Please use the provided link so you can check out all the amazing benefits for your company -
D&B link
Thanks for following along. See you soon!