"Beat The Market with Smart Stock Trading Signals"

The Best Investment Solution for Expats and International Nomads

Warren Buffet, known as "The Oracle of Omaha" is perhaps the world's savviest investor. He is known worldwide as one of the best stock pickers of all time.

Warren based his stock picking strategy on Benjamin Graham's "value investing", which basically means picking up stocks whist they are cheap (undervalued) and selling them when they are overvalued - "Buy Low and Sell High".

But, even Warren Buffet admits that stock picking is risky, requires a lot of research and often Warren Buffet has to visit the companies he invests in.  This takes up huge amounts of time. For the average investor, he recommends investing in index funds.

He has even recommended his wife and children to invest their inheritance into index funds for safety in the event of his death. Index funds invest cash into a basket of equities or bonds. This reduces the risk of investing into any individual stock.

Here is a quote from his annual newsletter on Feb. 28th, 2017:

"My advice to the trustee couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers."

What are Index Funds?

Index funds were invented by Jack Bogle. Jack is the founder and retired chief executive of The Vanguard Group who run Vanguard Mutual Funds as well as Vanguard ETFs which currently have over $4 trillion dollars under management.

In 1975, influenced by the works of Eugene Fama, Burton Malkiel and Paul Samuelson, Bogle founded the Vanguard 500 Index Fund as the first index mutual fund available to the general public.

Warren Buffet calls him a "hero"...

"If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle"

He continues...

"For decades, Jack has urged investors to invest in ultra-low-cost index funds. In his crusade, he amassed only a tiny percentage of the wealth that has typically flowed to managers who have promised their investors large rewards while delivering them nothing – or, as in our bet,lessthan nothing – of added value.

"In his early years, Jack was frequently mocked by the investment-management industry. Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me."

"The Money Pouch uses Jack Bogle's passive investments using index trackers and Warren Buffett's value investing to pick the optimal stock/bond portfolio using low-cost ETFs. You can then simply copy the trading signals"

Great, but how is The Money Pouch targeting higher returns than other roboadvisers?

"The Money Pouch uses asset diversification & momentum strategies to control risk and target higher returns"

The Money Pouch chooses the exact amount of equity, bond & gold ETFs to buy & sell each month or the strategies can sit in cash if stock markets start dropping fast over a prolongued period.

Here is an example: in a bull run, the strategy might hold 70% in equities and 30% in bond ETFs. This is a typical "buy and hold" investment portfolio for a young investor. 

However, during the years 2000, 2008 and 2020, the stock markets crashed, for a variety of reasons. Most triggered by a "black swan" or other unforseen event, such as the Coronovirus in 2020 and the collapse of the mortgage derivatives markets in 2008.

In such an event, the strategy can change to hold say 10% in equities, 50% in bonds 30% in gold and 10% in cash. This would help to protect your investment portfolio in sustained falling markets, known as "bull markets".

This ability to swiftly move between equities and bonds is what protects your nest egg.

In this way, we can control risk, whilst targeting higher returns. It isn't rocket science and we aren't reinventing the wheel, but it should improve performance and beat the S&P500 index over five to ten year periods.

In this way, we should be able to consistently outperform the stock market over the long run.

"The Money Pouch invests in real income producing companies such as Coca-Cola, Apple, Google and Microsoft. It isn't a reckless gamble on cryptocurrency, binary options, forex or commodity trading robots"

The brightest ideas are often the simplest

Why Invest with The Money Pouch?

You have worked hard for your money. Now take the next step and let The Money Pouch invest your monies into well thought-out strategies. Our computer trading algorithms will automatically send buy and sell stock trading signals to you. Our roboadviser works for you 24 hours a day, 7 days a week and automatically sends rebalancing recommendations to maximise returns, whilst minimising risk.

Proven Investment Methodology

Our service relies on consistent and overwhelming research, which shows that index funds significantly outperform actively managed portfolios the majority of the time. We use ETFs that track indexes for the major asset classes (equities, treasuries & gold) in our portfolios. Each ETF is chosen by our investment research team based on its relative cost, risk/reward return, tracking error and market liquidity.

You can read a selection of investment white papers here.

You can read more about ETF rebalancing here.