Investment strategy
Our foundations
This service comes from the desire to share our investment strategies and purposes, to refine the financial education of as many people as possible.
As a value investor, we are comfortable accepting a moderate amount of risk in order to realize the large returns made possible by our macro themes and economic cycle valuation models.
Our principles and investment models help us to ensure that the intrinsic value of our portfolios is substantially above the current market price at any given time. Therefore, we believe that the drawbacks in ZoomProfit's strategies offer great opportunities for new and existing investors to use the capital.
ZoomProfit believes in portfolio diversification between stocks and between independent and unrelated macroeconomic themes that can be achieved by various combinations of our investment strategies to tailor individual clients' needs, objectives and risk tolerance.
The sizing of the individual position is a function of the investment team's conviction, the specific volatility of the stock, the correlation with other stocks in the portfolio, and the contribution to the thematic level and overall risk of the portfolio.
We consider market volatility as an ally that helps us to initiate cheap bullish positions and bearish positions at high prices and, finally, to provide us with a high return.
Macro themes and megatrends
At ZoomProfit, we focus attention on the megatrends that we believe can be ridden: changes in global and macro-economic forces capable of reshaping industries, markets, economies and entire societies.
The global debt crisis
We are in a structural global recession based on record debt relative to world GDP. A 10-year bear market in US equities is poised to manifest due to historical high valuations with rising permanent unemployment, a decline in real GDP and a decline in US earnings growth. The consequence of all this is a "non-stop press" for debt financing.
Precious metals bull market
Today, gold is an extremely undervalued safe haven currency. Precious metal mining stocks offer an incredible opportunity with the continuous flow of money printing. All ZoomProfit strategies are ready to take advantage of a new secular bull market in precious metals while we are also developing the best approach to investing in the mining industry.
Technology
It includes the rise of robots (artificial intelligence), nanotechnology and much more. Technology is advancing so rapidly that it will fundamentally change the way society works.
Alternative energy sources and EV
These include solar, hydro, wind ... and even nuclear. As for electric vehicles, from miners who supply energy metals to car manufacturers, to new technologies that will make electric vehicles better and cheaper.
Monetary devaluation
The trend of governments to adopt a "non-stop printing" approach to debt financing. Decades of fiscal debauchery are culminating in a debt explosion that is poised to bring currency devaluation to an almost unsustainable point.
Central bank interventions aided and abetted reckless spending that clouded the underlying fundamentals of organic growth.
Instead of laying the groundwork for future real economic growth, monetary authorities have fostered a euphoric investment environment with delusional asset valuations.
The decade of raw materials
Every decade or two, there is an exceptional opportunity in commodities. We believe the decade 2020-2030 will be one of those periods. This time frame is only comparable to the 1960s, and to a lesser extent to the late 1920s and late 1990s, in terms of how commodities underperformed stocks. Each time they turned out to be incredible buying opportunities. From oil, to natural gas, to other raw materials necessary for the development of the society of tomorrow.
This is because, as Rick Rule often puts it, "the bear markets are the authors of the bull markets, and the bull markets are the authors of the bear markets."
Some of these trends, like the upcoming debt explosion, have obvious ways of being exploited, including gold, silver, and miners. But these opportunities are just waiting for investors who are able to seize. And we, with our information, will try to facilitate our users to provide them with a decidedly effective education for this purpose.
And that's why you'll see us covering a variety of topics, from gold miners to dividend paying stocks to recent technological breakthroughs. These megatrends can be extremely profitable.
Of course, no one can predict the future with certainty (although we have had some luck in doing so until now), but this is your first step towards exploiting the opportunities that the markets present to us. And make no mistake - there are far more profit opportunities in the years to come.