A simple law of investment: the higher the yield, the higher the risks

Save this list of assets. It represents a scale from the least risky investments with modest returns to investments with the highest returns:

1️⃣ Short-term government bonds

2️⃣ Long - term bonds - government and corporate

3️⃣ Portfolio of bonds and stocks

4️⃣ Shares

5️⃣ Cryptocurrency

* Is not an investment recommendation

Gold surged to a record high above $2,160

Spot gold hit $2,161.19 an ounce, with futures reaching $2,168.10 an ounce.

#gridcapnews

The European Central Bank has kept the rate at a record high level for the fourth time in a row.

The base interest rate remained at 4.5%, the marginal loan rate — 4.75%, and the deposit rate — 4%.

#gridcapnews

Can the price of Bitcoin fall to zero?

Theoretically yes, however, it's unlikely because:
- Bitcoin already has an established user base and various use cases.
- Bitcoin is decentralized, limited in supply, and provides transaction security without intermediaries.

It's important to remember that Bitcoin is a highly volatile asset, and its price can fluctuate sharply.

#gridcaplearn

Here our current top 10 largest individual stock holdings:

1.Apple $AAPL
2.Nvidia $NVDA
3.Tesla $TSLA
4.Disney $DIS
5.Netflix $NFLX
6.Amazon $AMZN
7.Walmart $WMT
8.Robinhood $HOOD
9.Lockheed Martin $LMT
10. CrowdStrike $CRWD

A new financial crisis may already be on the threshold.

The US Federal Reserve's emergency lending program for regional banks, which provides financial support to the same banks, has ended.

Their shares continue to decline.

#gridcapnews

⁉️Stocks and bonds - what is the difference?

▫️ A share is a company 's share

▫️ A bond is a company 's debt

By buying a share, the investor becomes a co-owner of the company. And receives a part of the company's income for this – dividends.

By buying a bond, you are lending money to the company. And you get interest income for it – coupons.

Another successful lecture at Higher school of economics in Moscow.

#gridcap

The best performing stocks in the S&P 500 over the last 5, 10, 15, and 20 years.

#gridcapstock

GridCapital recommends: don't fear crises.

It's crucial to understand that everything in the world develops unevenly. There are always ups and downs. And this theory can be applied to absolutely everything that surrounds us.

If you ever feel fear, remember that even the most popular cryptocurrency has had its ups and downs.

#gridcaplearn

Success story of famous investor: Benjamin Graham

Known as the “father of value investing,” Graham authored the seminal investment book, The Intelligent Investor, and mentored Warren Buffett

The cornerstone of Graham’s investment philosophy is Value investing, which entails purchasing stocks that are currently trading at a discount to their intrinsic value.

#gridcaplearn

Word of the day: Underwriting

Underwriting assesses risk for financial services. Technology helps analyze trends for securities underwritten, aiding data-driven decisions.

#gridcapword

Day 1. Learning how to invest.
We have created our own portfolio that each of you can create and invest with us. Read what we have included in it.

Now our portfolio consists of three parts: stocks that we have already purchased; stocks that we are watching, and money that we have not invested anywhere yet.

We started on April 5th with $5,000. On the same day, we purchased shares of Wal mart Inc. for $250 and Devon Energy Corporation for $250. For the past month, we have remained at zero, which is generally not bad, because the economy is now at the bottom. By the way, during the same time, the S&P500 fell by 2.97%

Follow our news, we will continue to invest and together with us you will be able to increase your income.

#gridcapinvest

Day 2: Classify industries by type

Some industries perform better or worse depending on the business cycle. Industries are divided for this purpose into four broad classes: cyclical, noncyclical, countercyclical, and growth.

Cyclical: Sensitive to economic ups & downs (e.g., steel, autos). Well in booms, struggle in busts.
Non-Cyclical (Defensive): Less affected by the economy (e.g., food, utilities). Steady demand, lower returns.
Countercyclical: Thrive when the economy weakens (e.g., gold). People buy for safety during downturns.
Growth: Seemingly disconnected from the economy, experience consistent growth (may change over time).

Understanding the type of company and the current situation (at what stage of the cycle we are at) will allow you to make a more informed decision when buying shares.

#gridcaplearn

You think it's a joke. No, this is a modern reality.

#gridcapmeme

The Four Stages of the Business Cycle

The economy fluctuates between growth and contraction in a regular cycle—the business cycle.

Understanding the business cycle, and where we are in it at any given time, is an important aspect when making investment decisions.

Business cycles go through four stages, or phases:
- Expansion
- Peak
- Contraction
- Trough

#gridcaplearn

The economy is currently at the bottom. All key indicators point to this.

The Federal Reserve interest rate is currently ~5.33%, and the price of gold has reached its historical maximum in the last 30 years.

Short-term bond yields are currently higher than long-term ones. As of April 25, 2024, the yield on the 3-month Treasury bill was 5.47%, while it was 4.70% for the 10-year U.S. Inflation rate stands at 3.5%, and the unemployment rate in the US is 3.9%. In March 2024, the Industrial Production Index (IPI) reached a value of 102.7 in the United States.

Therefore, we can confidently say that the US economy, and consequently the global economy, is currently at the bottom of the economic cycle.

#gridcapnews