How To Keep & Grow Your Money #19

The NEXT Trillion Dollar Company?

This company just signed a MASSIVE deal with Apple.

It gets their AI tech in Apple’s iPhones and iMacs until 2040!

But it goes beyond that.

The company is getting its tech into products by Nvidia, Google, and Samsung too.

Its AI tech is so crucial…

Nvidia is actually buying up the stock too.

They’ve invested more in this one company than any other… nearly $150 million.

Is this stock the next Nvidia… which has gone up 81,700% over the last 20 years?

Watch this breakdown of this stock right here.

^{_{This section can contain product affiliate links. We may receive a commission if you make a purchase after clicking on one of these links.}}

In this letter, we analyze the Vanguard Mid-Cap ETF (VO).

Ticker: VO | Price: $281.84 | Market Cap: $73.7B | Average 10-Year Annual Return: 9.8% (as of September 2024)​

What is it (short): Vanguard Mid-Cap ETF provides exposure to medium-sized U.S. companies, offering a balance of growth and stability that can complement large-cap and small-cap investments.

What is it (long): This ETF tracks the CRSP U.S. Mid Cap Index, focusing on mid-sized companies across various sectors. These firms are typically well-established and exhibit strong growth potential while being less volatile than smaller companies. The ETF’s diversified holdings make it ideal for investors seeking moderate risk and long-term growth. With a low expense ratio of 0.04%, it’s also cost-efficient​.

Our thoughts: VO is a great choice for investors looking to diversify their portfolio with mid-cap exposure. It offers a blend of stability and growth, making it suitable for those who want a middle ground between the riskier small-cap and the more stable large-cap investments. Its low-cost structure is an added bonus for long-term investors.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

Spain’s Golden Visa in the Trash?

What’s Happening:
Spain’s Congress has approved legislation to cancel its Golden Visa program, with the changes expected to take effect in January 2025. Initially aimed at attracting foreign investment, the program allowed non-EU nationals to obtain residency through substantial financial investments, such as property purchases worth €500,000 or more. However, concerns over its contribution to housing affordability issues and criticisms from the EU regarding potential misuse have led to this decision.

Key Details:

• End of New Applications: From January 2025, new residency permits through the program will no longer be granted.

• Focus on Housing Crisis: The property investment route, in particular, was blamed for driving up property prices and worsening Spain’s housing crisis.

• Rushed Applications: The announcement has sparked a surge in applications as individuals try to secure visas before the deadline.

Why It Matters:
If you’ve been considering applying for Spain’s Golden Visa, now is the time to act. The window is closing, and after January 2025, alternative residency options may require different criteria. For investors, this decision could impact property market dynamics, particularly in regions popular among foreign buyers.

Global Optimizer offers resources to help expats adapt to these potential changes.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial concept to learn in this edition: Bear Markets

What Are Bear Markets and Why Are They Important for Investing?

Definition: A bear market occurs when financial markets experience a prolonged drop of 20% or more from recent highs, often triggered by economic downturns, high inflation, or global crises. It signifies widespread investor pessimism and reduced confidence.

Causes of Bear Markets: Bear markets can result from various factors, such as economic recessions, rising interest rates, geopolitical tensions, or unexpected events like pandemics. These factors reduce corporate earnings, consumer spending, and investor confidence, leading to declining stock prices.

How They Affect Investors: Bear markets often lead to significant losses in portfolios, especially for those heavily invested in stocks. However, they also present opportunities, as long-term investors can acquire assets at reduced prices, setting the stage for future gains when markets recover.

Key Considerations for Investing During Bear Markets:

1. Diversification Matters:
   A balanced portfolio with stocks, bonds, and alternative assets can help reduce overall risk. Certain assets, like gold or treasury bonds, often perform better during market downturns.

2. Focus on Quality Investments:
   Companies with strong fundamentals, reliable cash flows, and competitive advantages tend to weather bear markets better. Look for "blue-chip" stocks and sectors less affected by economic fluctuations, like healthcare or utilities.

3. Stay Calm and Avoid Panic Selling:
   Emotional decisions can lock in losses. Instead, maintain a long-term perspective and focus on your financial goals.

4. Invest for the Long Term:
   Bear markets are temporary phases in the broader market cycle. Historically, markets recover and grow over time, making it essential to stay invested for future growth opportunities.

5. Consider Dollar-Cost Averaging:
   Consistently investing a fixed amount during bear markets can help you purchase more shares when prices are low, reducing your average cost over time.

Why Bear Markets Are Relevant:

Understanding bear markets is essential for navigating financial ups and downs. They serve as reminders of market volatility but also highlight the importance of preparation, discipline, and a long-term strategy. By adopting a proactive approach during these periods, investors can minimize risks while setting the foundation for future success.

To learn more about Bear Markets read more on Investopedia here or learn more on how to invest here.