how I would invest $5,000 in June 2022 + my perfect portfolio
Welcome to the +20 subscribers who joined this past week and are now part of 6155 millionaires, CEO’s and high-performing entrepreneurs who read the #1 financial newsletter on Substack.
My name is Alex and I love creating streams of passive income. My goal is to help you do the same.
If you’ve enjoyed The Profit Zone please take 30 seconds out of your day to share this newsletter, leave a like, or a comment. It means the world to me and costs you a total of $0. Thank you for the support! It doesn’t go unnoticed.
Announcement
If you’re a financial advisor, portfolio manager, or just enthusiastic about money and want to start building an online business around it, this is for you.
I want to work with 1 person who’s interested in either starting a brand around finance or wants more eyes on their existing brand.
If that’s you, shoot me a message with the words “I’m in” on Twitter using the link below. Let’s talk. Cheers.
It’s no secret the market has been absolutely insane for the past couple of months.
The S&P 500 has officially reached bear market territory and when the bleeding in the crypto markets seems to be over prices just keep falling. Everyone’s scrambling to determine what the best course of action is right now.
But that’s the problem…
Investing isn’t about the present. It’s about what you think will happen in the future. A concept many investors have failed to comprehend.
What does this mean exactly? Put it this way.
Let’s say you bought a house for $500,000. 1 month later some guy with a mustache wearing a suit with a fancy clipboard comes up to your front door and offers you $300,000 for the house on the spot. Would you sell it?
Of course not. The house is worth $500,000 to you. Just because someone thinks it’s worth less, shouldn’t change your own perceived value.
We’re seeing this in the stock market right now. Investors who paid $50/share are selling at $30/share because that has become the market consensus.
But why is it that conviction is tied to price? Simple. Because price drives consumer psychology. We perceive things of a higher price to be of higher quality. The reverse is also true. That will never change.
But that’s a dangerous game to play in the stock market. Especially when your decisions today can affect the rest of your financial life.
A closer look at the market
There are tons of deals out there. Stocks that have fallen 50%+ from their all time highs. Quality companies that are trading at massive discounts. Industries that have been beaten down.
But there are a few industries and companies that I personally believe are worth loading up on.
Note: the following is not financial advice. Please do your own DD.
Below you can see the 1-month performance of various sectors. But I want to draw your attention to the Technology and Real Estate performance, down 8.39% and 8.14% respectively within the last month.
Some people may see this and think it’s a good time to stay away. My long term investor mindset tells me otherwise. Instead my instinct sreams “buy, buy, buy!”
There are other sectors that have taken a massive hit like Communication Services, Health Care, Utilities etc. but Technology and Real Estate are my personal preference and 2 sectors I have (and always will have) the most conviction in.
Why?
Simple. There are massive amounts of innovation and growth in the technology space, whereas real estate has been one of the most steady industries for a very long time, as well as one that will never be replaced by anything (except maybe the Metaverse).
On one side is a very risky and volatile sector, and on the other is a lower risk sector that is much more predictable. This creates some balance between the two and allows me to sleep better at night.
Let’s get to the meat and potatoes, shall we?