How To Keep & Grow Your Money #3

The provider of that sweet sweet sugar in this letter is: Connecting Dots

Connecting Dots is our partnered letter perfect for those wanting to learn about startups, scaling and strategy for business.

This letter was founded by and led by @dharmesh, Founder of Hubspot (a $24B mega-company) and is one of the biggest minds of the Startup world today.

Get started with his mind-opening letters here.

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In this letter we analyse the iShares Global Tech ETF

Ticker: IXN | Price: $86.29 | Market Cap: $5.4B | Average 10-Year Annual Return: 19.82%

What is it (short): One of the biggest ETF trackers of global Tech Giants of the world.

What is it (long): The iShares Global Tech ETF (ticker: IXN) is an investment fund designed to track the performance of global technology companies. It provides investors with exposure to a wide range of tech firms from around the world, including major players in electronics, computer software, hardware, and information technology.

Our thoughts: This ETF is suitable for investors looking to gain broad exposure to the global tech industry and benefit from the sector's growth potential. So far they’ve had an incredible performance and with the new wave of AI, might be pushed to new performance heights.

Always consider the risks and your investment goals before investing.

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.

Portugal's Non-Habitual Resident (NHR) Regime Reinstatement

After facing severe public backlask, portugal is now considering reinstating their Non-Habitual Resident (NHR) Regime which is a favourable tax regime to attract individuals to move to Portugal. Famously offering a flat 20% income tax rate for portuguese-sourced income and 0% tax on dividends sourced from abroad.

Key Points:

• Objective: Attract international talent and investors by offering a flat 20% income tax rate for eligible individuals who establish tax residence in Portugal for at least 183 days per year​ (CAFIMO)​​ (Global Citizen Solutions)​.

• Eligibility: Applicable to those who have not been Portuguese tax residents in the previous five years, primarily targeting high-value sectors such as scientific research and innovation. Excludes retirees and certain income types​ (CAFIMO)​​ (Portugal.com)​.

• Transitional Provisions: Those who began their relocation process before the end of 2023 can still apply for the original NHR benefits​ (Lamares, Capela & Associados)​.

The success of this initiative depends on legislative support and its alignment with Portugal's broader economic goals​ (Portugal.com)​​ (The Sovereign Group)​.

Read more on this here and 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: Bull Market

What Is a Bull Market?

A bull market is a period during which the prices of financial assets, such as stocks, bonds, real estate, or commodities, are rising or are expected to rise. The term is most often associated with the stock market.

Key Features

• Rising Prices: In a bull market, the prices of securities increase consistently over time. This trend reflects investor confidence and optimism about future economic growth.

• Threshold: A bull market is typically defined as a situation where stock prices rise by at least 20% from their recent lows.

• Investor Sentiment: Bull markets are characterized by positive investor sentiment, leading to increased buying activity and higher market valuations.

Characteristics of a Bull Market

• Duration: Bull markets can last for several months or even years, reflecting prolonged periods of economic growth.

• Economic Indicators: They often coincide with a strong economy, marked by high GDP growth, low unemployment rates, and increasing corporate profits.

• Higher Valuations: Securities are valued more highly as investors are willing to pay more due to the anticipated continued rise in prices.

• Increased IPOs: More companies go public during bull markets, seeking to capitalize on the favorable market conditions to raise capital.

Investment Strategy in a Bull Market

• Increased Buy and Hold: Investors continue to buy more of a security as its price increases, leveraging the upward trend to maximize gains.

Historical Examples

• The Roaring Twenties: A period of rapid economic growth and speculative investments that ended with the 1929 stock market crash.

• 1990s Dot-Com Bubble: Driven by the explosive growth of internet and technology companies, this bull market saw substantial gains until the bubble burst in the early 2000s.

• 2009-2020 Bull Market: The longest bull market in history, characterized by strong earnings growth, low interest rates, and high investor optimism, ending with the onset of the COVID-19 pandemic.

Understanding Bull Markets

Bull markets are driven by factors such as strong economic performance, low interest rates, and investor optimism. However, predicting the exact timing and duration of bull markets can be challenging due to market complexities and the influence of psychological factors and speculation.

In contrast to bull markets, bear markets occur when prices are falling, reflecting pessimism and a lack of confidence among investors. Recognizing the signs of a bull market can help investors make informed decisions to capitalize on rising prices.

To learn more about Bull Markets read more on Investopedia here.