🏰 J.P. Morgan’s market forecast

It’s #QualityTuesday!

In this series, we will teach you 5 things about the stock market in less than 5 minutes.

1️⃣ J.P. Morgan’s market forecast

Legendary banker J.P. Morgan once was asked on the street how the financial markets would perform the next day.

His response? It will fluctuate.

Trying to time the market is a fools game.

2️⃣ The periodic table of asset classes

There are a lot of different financial products on the market.

For most people, it’s not a good idea to use shorts or leverage to invest.

Stick to what you know. In the long term, stocks are the best investment.

3️⃣ One simple investment quote

Would you prefer a mediocre spouse? Or a great spouse?

You want to have a great spouse. The same goes for stocks.

"Why would anyone want to own a mediocre company just because it's cheap, when you can own and live with great companies?" - T Rowe Price

4️⃣ You are what you read

Do you want to excel in any subject?

Read an hour a day and you can’t help but become an expert.

5️⃣ Example of a Quality Company

Kinsale Capital operates as a specialty insurance company. The Company markets and sells property, casualty, and specialty risk insurance products through a network of independent insurance brokers.

• Profit Margin: 19.4%

• ROIC: 29.2%

• Earnings yield: 3.1%

• Expected yearly EPS Growth (next 3 years): 21.1%

• CEO Tenure: 13.9 years

• CAGR since IPO: 56.4% (2016)

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About the author

Compounding Quality is a professional investor which manages a worldwide equity fund with more than $150 million in Assets Under Management. We have read over 500 investment books and spend more than 50 hours per week researching stocks.