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Investment Strategy - The document highlights Dollar Cost Averaging (DCA) as an effective wealth accumulation strategy [1] - Buying the Dip (BTD), which involves increasing holdings during market downturns, is also emphasized [1] Investment Approach - The document suggests a combined approach of DCA and BTD for wealth accumulation [1]

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Market Analysis of the "September Curse" - Historically, the stock market, particularly the US stock market, has shown the lowest average return in September since 1928, with an average return rate of -1.2% [1] - This phenomenon isn't limited to the US stock market; global stock markets, including Hong Kong, the UK, and Canada, also exhibit similar trends [1] Reasons for the "September Curse" - Large institutions on Wall Street typically take vacations from June to August, and upon returning in September, they concentrate on adjusting their investment portfolios [1] - Due to historical data indicating a higher probability of market declines in September, investors tend to avoid potential losses by collectively adjusting and selling stocks, leading to a self-fulfilling prophecy [1] - Many fund companies end their fiscal year in September and aim to improve their annual financial reports by selling underperforming stocks and adjusting their holdings before the end of the month [1] - The US government's fiscal year ends in September, coinciding with the Federal Reserve's annual meeting, which determines monetary policy adjustments and expectations, creating policy uncertainties that lead investors to be cautious and reduce buying activity [1] Investment Strategies - It's unnecessary to deliberately avoid the "September Curse" or market declines, as historical negative average returns are influenced by past major bear markets, and not every September experiences a downturn [1] - Avoiding potential declines may also mean missing out on potential gains, and the cost of missing gains can be significant for long-term investors [1] - Long-term investors shouldn't be overly concerned about one underperforming month out of the year, as it's unlikely to affect long-term investment returns [1] - Investors can capitalize on potential September market dips by reallocating assets or increasing investments, which may enhance long-term compounding effects [1]

We will often see people talking about benefits But few people talk about the cost For example Some ETFs have been very popular in recent years They use the option strategy of Covered Call To achieve high dividends Their dividend rate Usually more than 10% Some even exceed 100% It looks very attractive But have you ever thought about it. Such a high dividend rate What is the price behind it Good today's video Let's discuss On the topic of high dividend costs I will also share one Very simple way To avoid th ...

Portfolio Performance & Strategy - The Hi5 portfolio, initiated in August 2023 with 500,000 Canadian dollars, surpassed 1 million Canadian dollars by June of this year, achieving a compound growth rate close to 12% [1] - The core investment strategy is DCA (Dollar-Cost Averaging) plus BTD (Buy The Dip), involving consistent monthly investments regardless of market fluctuations [1] - Investing in the US stock market is a key component of the strategy, based on the belief that it will rise in the long run due to factors like oversupply of money and the influence of capitalism and vote-driven politics [1] - The strategy emphasizes that market drops and corrections, including crashes, present opportunities for accelerated wealth growth, as the market will eventually recover and reach new highs [2] Risk Management & Market Analysis - Data from JP Morgan indicates that between 1980 and 2020, 44% of companies in the Russell 3000 index experienced catastrophic losses (stock price fell >70% from peak and never recovered) [2] - During the same period, 42% of stocks in the Russell 3000 index generated negative absolute returns, and 66% underperformed the market [2] - Only 10% of stocks outperformed the market during this period, achieving cumulative returns of 500% or more [2] - Actively managed stock funds have a low survival rate, with 59% of funds from December 31, 1992, to September 30, 2022, either closing down or merging, and only 10% outperforming the S&P 500 index [2] Portfolio Rebalancing & Adjustments - The Hi5 portfolio will undergo annual rebalancing in August, involving adjusting the holdings of the 5 ETFs to maintain equal weighting [2][3] - MOAT ETF will be replaced by SPMO ETF, shifting from a fundamental-based stock selection model to a momentum-based model that selects the best-performing stocks in the S&P 500 index [2][3] - The rationale for replacing MOAT with SPMO is that SPMO has demonstrated better overall performance and a superior risk-return ratio compared to MOAT [3]

Key Strategy - Leveraged Rotation Strategy (LRS) can amplify returns while effectively managing risk by reducing drawdowns and smoothing the investment process [1] - LRS involves using a moving average line as a filter: when the index closing price is above the moving average, investors buy the index with leverage; when it's below, they switch to US Treasury bonds or cash [1] - The strategy uses the moving average of the index, not the leveraged fund itself, as a filter [2] Market Analysis - Leverage can linearly amplify returns and risks, but market behavior isn't always linear; it varies with market volatility [1] - High volatility is detrimental to leverage, while small fluctuations and upward trends favor it [1] - When the S&P 500 index is above its 10-day moving average, the annualized volatility is 156%; below, it's 228% [1] - When the index is above its 200-day moving average, the annualized volatility is 146%; below, it's 269% [1] - Most significant drops occur when the index is below certain key moving averages, with the 20-day moving average being particularly important statistically [1] Performance Metrics - From October 1928 to December 2020, Buy & Hold strategy yielded a 94% annualized return, regular 3x leverage yielded 162%, and 3x LRS using the 200-day moving average yielded 267% [1] - A $10,000 investment in the S&P 500 in October 1928 would have grown to over $39 million by December 2020, while the 3x LRS strategy would have reached $28 trillion [1] - During the Great Depression, the S&P 500 fell by 86%, but the 3x LRS strategy only fell by 49%; in the 2008 financial crisis, the S&P 500 fell by 55%, while the 3x LRS strategy fell by 31% [1]