2021, Investing tips for the New Year

2021, What’s in Store for the New Year

It’s been one heck of a ride in 2020 and it’s going to get a lot better.

Here’s why 2021 should pop

What I see in 2021

  1. COVID will decrease over time. Not just because of the vaccines but because people will adapt.
  2. Trump is Out but the media will hit Biden too since they have lost their bad guy which sold a lot of media ads. I expect Biden will get support from the media and this will play out well for investments for the New Year.
  3. I do not think Democrats will win the senate so expect Biden to be held up but small business PPP money should flow along with sweet long-term low-interest-rate SBA loans. I expect a lot of easy cheap and or free government money, especially for businesses.
  4. The Federal Reserve will keep interest rates to almost nothing
  5. Small Investors will continue to pile into stocks which will drive up the prices. The demand will continue its manic rise.
  6. Mortgage rates will go even lower, I have a friend that did 2.5% last month.
  7. More businesses will go under so good for Asset Recovery businesses like mine.
  8. Technology will increase so I’m betting on another good year in Apple and FANG stocks except for Netflix. So Facebook, Amazon, Google, Microsoft, and of course Apple will do well. I’d also place another bet on Alibaba since the recent pullback. Also, take a shot at Bank of America and JPM Chase.
  9. Buying some gold and silver not a bad idea but not much.
  10. Commercial Real Estate is out except for apartments but owning a building when COVID is on will not help you collect rents so I would stay away for a while and watch what happens to COVID. The government will force landlords to sit and wait for their money and banks do not wait to collect mortgages due.

Guarantees

I should tell you I am a lousy forecaster but I do know that rates will stay down for at least this year. So I expect that demand will increase for housing and cars which will give everything a boost. Therefore the low-interest rate and cheap money will keep the economy moving forward. It’s not a guarantee but that’s what I see.

Cheap Money

Since money is all over the place from governments and banks go an get the cheap money and pay down your debts. Zero debt is in, and cash flow will increase.

I want plenty of available cash so when the markets crash again I’ll be ready. So if you don’t have a business then create one today. I tell you how in my blogs and videos which you can link to on the front page of this blog.

Real Estate, Private and Public Companies

Unlike most investment blogs I actually show you how to do the following.

  1. How to create your own business from home
  2. Invest in public and private companies for passive Income
  3. How to purchase Real Estate for immediate cash out when you buy and long term holdings.

My blogs and videos also cover a range of other topics and here they are too.

  1. Motivation, which I sum up in one word. Responsibility, as in taking responsibility.
  2. Relationships. Business and personal.
  3. Hiring offshore talent and where and how to do it.
  4. Investing in so-so companies, then getting out, This is trading but still, I call it short-term investing.
  5. Banking, Finance, Debt, and how and where to get a mortgage and other money and from who.

In MY recent 3 minute video which I will post on this blog, I tell you all about my YouTube videos and the kind of subscribers I am looking for. Focused fanatics as opposed to casual day-trippers. In other words, If you’re just breezing around that’s cool but my library of knowledge and information is geared more to action folks as opposed to the dreamers.

In other words, I’ll always tell you the way it really is in my view, not what someone else says.

Raw and Unfiltered

I chose these words, Raw and Unfiltered because I basically write for myself. In other words, I am making all my work for the last 100 days all about giving out free information for those who want to know what it’s really like from a full-time entrepreneur and investor.

In other words, I am an investor/entrepreneur first and then I love to write and do videos. So I’ into the writing and videos because I learn more than you do when I write. Same as teaching. Teachers who are good get more than their students.

Service vs Product businesses.

As I’ve written I prefer product-driven business vs service business for several reasons.

  1. Buying and reselling big brand name products like Apple and Nike are a lot easier than selling someone a service you provide.
  2. Service businesses crashed in 2020 because of COVID. That includes professional services except for maybe emergency room doctors. So lawyers, ad agencies, dentists, restaurants, and brick and motor retail stores crashed and burned.
  3. My business decreased too because the flow of product decreased in technology because manufacturers closed down and retailers/wholesaler went out of business, but My number was good enough to give me a solid 6 figure income and I run my business from how so COVID didn’t affect me like most people.
  4. Many billionaires became lawyers but never used their licenses. Case in point Charlie Munger, David Rubenstein, and my favorite Sam Zell to name a few. As Munger would say. He found it undignified to be a lawyer and ask people for money. Therefore he chose to be a full-time investor.
  5. Starting an at-home business selling whatever you have is easy and fun. Just list everything you don’t need and sell it on the three largest e-commerce store. eBay, Amazon, Walmart, and I guess you can throw in Etsy. Do not have people come to your house. Give a different address and everything is done over the internet. Check my blog and video on starting your own business.

The Passive Income Myth

A lot of Youtube videos talk about passive income. So people flock by the thousands to watch this stuff but it’s mostly a myth. The true passive income is out there but not to the degree that people will tell you. In other words, true passive income is money you get from doing absolutely nothing like my social security money that just landed a few minutes ago.

My social security deposit comes in like clockwork every month and it never fails. This is now my 5th consecutive year for collecting that money so it’s truly passive income. The problem is I had to work for over 40 years to get this.

My List of TRUE PASSIVE INCOME

  1. Social Security. I get this every month but it took me 40 years to get it.
  2. Dividends from publicly traded stocks like Apple and JP Morgan Chase.
  3. Royalty income from Books, Videos, and Blogs. (negligible, but once I write the book and do the videos then I just need to promote, spend money, to make money so it’s not really 100% passive.
  4. Real Estate Income. My real estate income comes from family members that live rent-free and collect the rents. So I never talk with them unless we need to upgrade the properties which I did with one this year. So if you have a management company that’s cool but make sure you don’t end up managing the management company. The management fees are killers too so, better to have what I have if possible.
  5. Money lending through Interactive Brokers. IB has a money leading program which I’ve talked about in other blogs like Free Wealth management. You loan them your free and clear stocks, no leverage, and lend them out at a rate of maybe 9%. You get half or 4.5% and it’s totally passive.
  6. Small privately owned businesses. I have ownership in trucks where the family derived them and I get paid a small monthly fee. The bad news is if they don’t have work I don’t make money. The good news is they are responsible for all maintenance on the trucks so once they have the trucks it’s p to them to make money. I have no involvement other than collecting the money.

Note

All dividend money is reinvested in the stocks that produced the money. Therefore I never see the cash. My social security money is reinvested in public and private companies almost 100% of it every month. In other words, I don’t need this $2600 a month to live off, so why not put it to good use like buying more Apple stock.

Big Passive Income Dollars

There are two forms of passive income.

  1. Passive Income you Create.
  2. Passive income you buy.

Passive income you buy is easy. Just buy income-producing dividend stocks. In other words, buy companies that produce income through their profits and paid back to you in the form of dividends.

Check my blog for the top dividend stocks and REITs (Real Estate Investment Trusts) for 2021.

Mike Addis, Carlsbad, California

 

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So,I hope you will follow my new year investing tips! You should start a happy new year! Strat your new year investing from today!

Mike Addis

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