September 21, 2016

Robert Citrone, the Tiger cub who now runs one of the best-known macro hedge funds, is warning investors that the market moment they’ve been anticipating is at hand. “We believe we are in the midst of the market correction we have been expecting,” Citrone, founder of Discovery Capital Management, told investors in an e-mail obtained by Bloomberg. “It will likely persist over the next 3-4 months and be the largest correction since the 2008 crisis,” he said. The firm managed about $12.4 billion at the start of 2016. Money managers believe we are on the cliff due to central banks reexamining monetary policy. The CBOE Volatility Index has increased about 19% this month. Citrone, whose fund specializes in making wagers on macroeconomic events, tempered his view by describing the correction as a “healthy adjustment from overvalued market levels, which are primarily a result of exceptionally easy monetary policies.” One of the many hedge fund managers dubbed Tiger cubs after working at Julian Robertson’s Tiger Management, Citrone founded Discovery in 1999. If there are seasoned investors that are predicting a market correction, then it’s important to have a financial education to protect your finances. Personally my strategy is having a diversification in asset classes such as paper assets, real estate assets, and business assets. It’s important to have assets that generate income. If you’re interested in having your own income generating asset, you can reach me in the contact me section.

If you’re looking to build wealth, if you’re looking to save up a nest egg for retirement, or if you’re merely looking for a way to alleviate financial stress in your life, passive income is one of the best ways to do it. The phrase naturally sounds like a buzzword, or something you’d hear on a late-night infomercial, but passive income really exists and operates exactly how it sounds–earning you revenue without demanding much effort or attention. Of course, this isn’t a get-rich-quick scheme, and you won’t be able to earn millions in passive income, but even a small stream of extra revenue can make a major difference in your life. The important point to remember about passive income is that it doesn’t take up a lot of your time once it’s in place. Your more conventional forms of earning money involves earning money at the exchange of time. Keep in mind most passive income generating assets will require an initial investment of time and or money, before you can reap the rewards. The article provides seven examples: dividend-paying stocks, rented real estate, e-books, advertising, apps and existing businesses. In previous blogs I’ve talked about dividend paying stocks and how to analyze companies, and so I recommend reading my previous blogs to form your own strategy. Rented real estate will require a higher level of financial education, and it requires a larger investment versus purchasing dividend stocks. Another option is writing e-books, but it’s important to know your target market and drive customers to purchase your e-book. The author provides a few examples of income producing assets, but it’s more important to understand what classifies a passive income producing asset vs. an active income producing asset. If your asset becomes your job and requires more and more of your time, then it’s not a passive income producing asset. It’s the same as confusing an asset with a liability. Be sure it’s doing what you want it to do, and if isn’t reassess your position and do something different. Once your passive income is greater than your expenses then you can retire wealthy.

If you have a prayer request, or if you’re in need of a financial checkup you can reach me in the contact me section.

For this week, I’ve included Top 10 Ways to Earn Passive Income from Video School Online YouTube channel.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG


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