Myths versus Facts Behind Asset Diversification

 

Tesla Spotlights 
Pitfalls and Safeguards 
in Risk Management 


 — 


The goal of asset diversification lies in shrunken risk for equal gain. This precept, however, shrugs off a host of grave dangers in the real and financial markets. An example involves an investor who allots a uniform sum to the firms in a newborn industry. Unfortunately, the vast majority of hatchlings are doomed to perish within a few years if not months. 

Another instance of flawed diversity concerns an index fund trained on a dynamic market such as clean energy. The products at hand could range from solar cells and electric cars to motile batteries and basic materials. In that case, the stocks will likely be weighted by their valuations on the bourse. However, certain markets such as commodities should at length contract in a green and sustainable economy. Moreover, many a miner will be poorly placed to harness the uprise even in the odd niches that do grow in the interim. 

In these and other ways, a gung-ho approach to diverseness is fraught with perils. An exception to prove the rule concerns a bellwether named Tesla. The mass of investors treats the vanguard as little more than a carmaker. Yet, the beacon also leads the way in other areas such as charging stations and advanced batteries, self-driving software and power grids. Given this backdrop, the sage investor sidesteps the markets staked by Tesla and expands instead into remote fields that lie beyond the firebrand’s sights for the foreseeable future.

In the larger scheme of things, the foul-up of asset diversification is a rampant reason for the failure of investors and pundits alike to keep up with the benchmarks of the stock market. As an antidote, a solid grasp of the myths and mistakes is a basic step toward crafting a sound program of investment.

 

Notes

The full report is titled “Myths versus Facts Behind Asset Diversification”. The document may be downloaded in EPUB format at Smashwords; in Kindle form at Amazon; and in PDF mode at the Internet Archive.

Moreover, a short video provides a preview of the report. The clip, labeled “Best Way to Diversify Beyond Tesla”, is available at Youtube.

*       *       *
  
#Investing  $TSLA 

Tesla Stock Forecast for 2022 and Beyond

 

Restrained Model Augurs Booming Prices

 — 


A combo of recent trends and proven records suggests that Tesla will shatter records and shower investors with flush returns. The mainspring lies in the upsurge of revenues which should trump last year’s record by well over 50%. In that case, the profits will balloon as sales further exceed the breakeven point. 

A lean and conservative model of Tesla projects the stock to grow by nearly 95% over the course of 2022. Moreover, the zesty uptrend should on the whole prevail for many years to come.

Remarkably, the boldest forecast from a survey of financial analysts reflects an uprise of the stock by just 31.7% a year hence. In relative terms, the base case from the compact model is three times the highest guesstimate of the pundits.

On the bright side, the pioneering firm has to date turned in a rousing performance in areas ranging from novel products and manufacturing breakthroughs to productivity hikes and revenue gains. On the glum side, though, the firebrand faces a host of hurdles such as jejune technologies and outmoded regulations along with production constraints and supply disruptions. Given the tussle of opposing forces, the actual outcome could end up a lot higher or somewhat lower than the current outlook. 

Despite the hurdles downstream, Tesla is slated to surpass its performance to date by a hefty amount. The records to be broken run the gamut from production volume and cost reduction to net income and stock value. While the future is never certain, some things are more likely than others. 


Notes

The full report is titled, “Tesla Stock Forecast for 2022 and Beyond”. The briefing is available as an ebook at Amazon or Smashwords

Meanwhile, a preview of the material appears as a short video labeled, “Tesla Stock Forecast for 2022+”. The clip may be viewed at YouTube or TikTok

*       *       *
  
$TSLA  #Investing

Tesla as an Aggressive Growth Fund

 
A Diversified Pool 
of 
High-tech Ventures


 ——— 



Tesla makes waves by building novel products for a sustainable economy starting with electric cars. As a mark of success, the dynamo has single-handedly created a mass market for clean vehicles.

Since its debut in 2003, the pioneer has gradually branched out into adjunct markets and turned into a conglomerate of high-tech ventures. The product lines on hand run the gamut from self-driving cars, solar cells, and potent batteries to insurance plans, neural supercomputers, and humanoid robots.

To be sure, Tesla is a single company from a formal stance. Even so, the wunderkind in practice bears a constellation of startups in motley sectors of the economy. For this reason, a stake in Tesla reflects a diversified portfolio of technologies and applications.


NOTE:  The report is a video titled, “Tesla as an Aggressive Growth Fund”. The briefing is available at Youtube or Vimeo.

Meanwhile, a preview of the report appears as a video clip titled, “Tesla as a High Growth Fund”. The nugget may be viewed at Youtube or TikTok.


*       *       *
  
$TSLA  #Investing

MintKit Growth Index – Update 2022


A Benchmark for Spry Growth at Modest Risk



The coronavirus plague that ravaged the global economy in 2020 continued to linger in diminished form during the past year. On the upside, though, the real economy as well as the stock market trudged ahead without any major problems. 

After thrashing around during the spring and autumn, the bourse reached all-time highs by the end of 2021. As a result, the flagship benchmark – namely, the S&P 500 Index (SPX) – rose by 26.9% from the previous year. 

When the stock market forges ahead, high-growth stocks tend to outrun their plodding peers. On the glum side, though, high-flying firms in China broke down en masse this year. Among them was Alibaba – a component of the MintKit Growth Index (MGX) – which plunged by 49%. Other washouts in the Index included a couple of mining firms, each of which lost around one-quarter of its value. As a result, the benchmark advanced by just 13.2% during the year.

From a broader stance, however, the MGX still managed to outpace the SPX. To wit, the Growth Index gained 18.4% per year on average since its debut, as opposed to 15.5% for the S&P yardstick over the same stretch.

From a different angle, the MGX upon its launch was set to unity (1); that is, 100 percentage points. Given this baseline, the Index reached 196.6695 points at the end of last year.

Looking downstream, the outlook for 2022 is roughly comparable to the previous year’s. The real economy will continue to recover from the drubbing dealt by the pandemic. In that case, the stock market should tramp higher as well.

As usual, the revised roster for MGX takes a moderately aggressive approach. To wit, the goal for the new year centers on ample growth at modest risk rather than huge potential at great peril.

On a fulfilling note, this will be the fifth and last year of the current experiment that began in 2018. That is, the project to maintain and appraise the MGX will conclude at the end of 2022.

On the other hand, the basic methodology behind the Growth Index will prevail for the foreseeable future. An example involves an expansion of the screening procedure to include option contracts as well as common stocks, or a variation among the weights assigned to the members of the Index. In these and other ways, the studies downrange will break free of a number of artificial fetters imposed on MGX during the current experiment.


NOTE:  The report is a slide presentation under the title of “MintKit Growth Index – Update 2022”. The briefing is available in PDF mode at MintKit Gist.

 
*       *       *