The World is going through a re-alignment, in many respects. Inflation has risen at unconceivable rates. Excessive economic declines are apparent. Violence seems ramped. Ranging from the streets of our cities to formidable Military forces raining down powerful explosives on civilians. Most concerning is the Heatwave. Are we seeing the effects of Climate Change, Solar Flares, or are the Tin-Foil theorist right, "The Planet Shifted When the Tsunami occurred!".
Despite all the external distractions, it's always important to take stock in oneself and the micro surroundings. I lived most of my life alone. It helped me develop and execute on my reasoning for the perceived betterment of... myself and family. My thoughts and reasoning is not often understood and seemingly wrong or boring to most. It seems a likeminded person entered my life, through Marriage. Not just my Wife, my Stepson. His mind doesn't stop. He probes deep to find knowledge. From him I realize how I might have been a pest to others. His injections often are a puzzling distraction but I respect he is debating understanding.
It is crucial, in my opinion, to go through life with values and triggers (Especially in relationships) but an extreme open-minded decision process will develop the greatest understanding and a receptive approach to conversation. He seems to be stuck in a thought process of avoiding failure, with investments, rather than raising Capital or generating passive Income. He is not receptive, it seems, which concerns slightly concerns me. The influence of reading online can be distracting despite being such a powerful resource.
I believe it's natural to mistakenly buy Shares at the top of the underlying Businesses life cycle. We should realize that seeing the past growth late does not typically produce good results. There is an Art to Capital Allocation (Fancy wording for Investing) and that focuses on an entry or purchase. Examples of success and failure are littered throughout one of the older and most regarded Investment Books, The Intelligent Investor. The examples and conditions haven't changed.
For Capital Gains, the Art is accurately seeing the future potential in growth, management, and the Markets' under valuations. Likewise, passive income is seeing the wiggle room, the mote, the ability to divert revenue back to the Owners' (Shareholders) at a reasonable rate for a longtime. Would it be wise to buy Apple today? It's in a very competitive and transitional environment but more importantly, it pays a Dividend that yields less than 1.5% Checking Account and is currently the biggest company on the S&P 500. I suppose one could anticipate greater passive income in the future, through Dividend Increases. Would it be wise to anticipate growth? No.
Today will be a busy day. Number 2 reports today. Proceeding Apple and Preceding Google, currently, is Microsoft. I bought a small allotment on the recent price dip. I anticipate a sale of this position today at 1.4% of yesterdays close. My capital gains would capture several years of anticipated dividend growth and payments. I'd rather allocate the Capital to Bonds at this point. Also reporting, from my Managed Portfolios is UPS, Mondelez, and Texas Instruments. Each of which I will increase holdings over time (Dollar Cost Averaging Strategy).
On the desire for Bonds, I am roughly 50/50 Bonds and Stocks. I plan to greater leverage towards Fixed Income, Bonds, for risk avoidance. It's a nauseating feeling that grows when I think of Stocks at this point. The run-up has been amazing so far but experience has been screaming in my ear. Growth is not likely to continue. I suspect a big retraction lurks.
Reminiscent of 2007-2008, Americans are losing their living arrangements. This time reports are outlining Renters'. The foundation of money circulation is the proletariat tenant. They are positioned to increase assets at a rate that would make me vomit. I do however, respect that notion they are, "Light" and absent any concerns. However, that lifestyle is costly.
Reminiscent of 2007-2008, Fed Fund rates are increasing to start a, "Bell-Curve," on Inflation. While some professionals outline concerns of, "Stagflation," I, contrastingly, fear deflation. It is coming and will start with Real Estate. Quite a substantial amount of circulation comes from availability to Home Ownership and the sizeable transactions. I made a mistake in my youth, pursuing a Career as a Realtor (Probably the most useless professional in the transactions). It did however expose me to the witnessing of needed and lucrative careers in Finance, Insurance, Legal, and Title.
Reminiscent of 2007-2008, Foreign economies are slowing.
On further notes, I ordered more Solar Panels! My favorite asset and investment. I love our Solar Generator. I may sleep on my roof one day! When I installed the current system, I used a 20 Amp 220 Volt Breaker (My home measured true 240 Volts (120v L1 and L2). I installed 12 - 255 Watt Panels tethered to Enphase M250-72-2LL-S22 Micro-Inverters (Potentially exceeding 1 amp when achieving maximum generation). Because of the Pitch and Direction of my roof, my Panels never achieved maximum generation. My best day thus far has generated 95% (234 Watts) on two outperforming panels (That includes the four percent inverter loss outlined by the Enphase Enlighten).
I planned on growing the solar system as a return on assets materialized. The 20 Amp Breaker can handle 16 Panels tethered to M250 Inverters. The factor that was difficult to anticipate has been improvement of solar panels. My Wife and I have, in our possession, the additional M250 Inverters, plugs in Landscape, and conduit. Panel selection is now limited as most exceed Inverter capacity. I have done calculations and believe 340 Watt Panels will be adequate and reach limits of the Inverters.
Just to make clear, Panels can exceed capacity of the Inverter. The result would be some, "Clipping". Meaning a loss of produced power. Not ideal, obviously, but I do not anticipate any clipping with the 340 watt panels. It will be changing 340 Watts at 9 Amps (38 Volts D/C) to (Potentially) 1.36 Amps @ Peak Power (249 Volts A/C has been recorded on Grid-Tie system). Shortcoming is because of the direction and angle of the roof. But it's quite hard to calculate and anticipate. The panels themselves could exceed the output specified on the nameplate (Or underperform). Regardless, degradation of panels is not anticipated to be realized. Not necessarily ideal but better outcome should be realized over a decade or two.
It is more ideal to install Solar today than when I purchased components. Just ten newer Micro-Inverters (You want to use Micro-Inverters, hands-down) and panels can reach capacity of a 20A Breaker (220 Volt). That is six fewer Inverters, Panels, Plugs, Racking and Hardware, and Wiring to produce 3.8 Kilowatts (That is applying the 80% reduction limits in Electrical Code and assuming 240 Volts).
Time for this writer to do some reading! Remember, all good decisions come from knowledge. A good decision is the difference between Wisdom and Knowledge.
