Paul Mampilly has been a professional investor for over 25 years. He’s seen many market ups and downs. He’s managed money for the royalty of Europe at the Royal Bank of Scotland. He managed money for a hedge fund named as one of the world’s best by BARRON’S. He won an investment contest put on by a foundation that carries on the work of John Templeton, one of the most famous investors of all time. Every month, in his newsletter Profits Unlimited, he tells subscribers what companies to buy so they can get wealthy by riding on the five megatrends he has identified. In 2016, he began predicting this bull market would go to 50,000 and on up.
Paul Mampilly is a bull for the overall stock market and, especially, for the companies he has uncovered that are going to grow from the megatrends. However, in a recent blog post he tells readers they should sell some of their investments.
The first asset class he advises everyone to dump is corporate bonds. The safest bonds in the world are the 10-year Treasury bond issued by the United States Treasury. In recent years, the interest rates the federal paid on Treasury bonds was very low, nearly zero. Therefore, investors around the world bought corporate bonds because they paid out a little more money in interest. However, the Federal Reserve started raising interest rates on government bonds in late 2015. Now, United States Treasury bonds pay out as much as old corporate bonds. Therefore, there is no sound reason to own these corporate bonds. They pay the same interest as Treasuries, but have more risk. Corporations can go bankrupt and fail to make the interest payments.
According to Paul Mampilly, the strong global business recovery makes the traditional hedges or safe shelter types of investments bad assets to hold in your portfolio now. That includes low growth dividend stocks. That includes Kellog and Campbell’s Soup. Their stocks have gone down 20% to 30%, and will continue to decline in value.
Paul Mampilly also says to sell the kinds of assets people typically buy when they are expecting the market to crash. This includes such hard money assets as gold, diamonds and collectibles. The world is not going to experience another Great Depression anytime soon.
Although they are new, not traditional, cryptocurrencies are another example of investments that people are buying because they are inaccurately expecting a stock market crash.
Paul Mampilly’s Facebook page is https://www.facebook.com/PaulMampillyGuru/