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- What are the risks of having a long-term investment in one industry?<\/li>\n\n\n\n
- What are the advantages of nominal vs PPP GDP comparisons?<\/li>\n\n\n\n
- Is being a “digital nomad” a good idea to do for a fresh graduate?<\/li>\n<\/ul>\n\n\n\n
Se volete che risponda a qualche domanda su Quora o YouTube, o se state cercando di investire, non esitate a contattatemi<\/a>, e-mail (advice@adamfayed.com) o utilizzare la funzione WhatsApp qui sotto.<\/p>\n\n\n\n
Alcuni dei link e dei video a cui si fa riferimento potrebbero essere disponibili solo nelle risposte originali. <\/p>\n\n\n\n
Fonte di tutte le risposte: la pagina Quora di Adam Fayed.<\/p>\n\n\n\n
<\/a><\/p>\n\n\n\n
What are the risks of having a long-term investment in one industry?<\/strong><\/h2>\n\n\n\n
It depends what kind of investment.<\/p>\n\n\n\n
An investment which can\u2019t be sold easily, like private equity, doesn\u2019t automatically become less risky if held long-term.<\/p>\n\n\n\n
Anybody who made long-term investments into these things regretted it\u2026\u2026<\/p>\n\n\n\n
<\/figure>\n\n\n\n
The car destroyed the horse and cart.<\/p>\n\n\n\n
For individual stocks too. We have all heard the expression don\u2019t put all your eggs in one basket.<\/p>\n\n\n\n
Ultimately, there is always a risk they will never recover.<\/p>\n\n\n\n
The Nasdaq recovered from the 1999\u20132000 crash. Most individual names didn\u2019t.<\/p>\n\n\n\n
For indexes, it has always been safer to hold long-term:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
Going forward, the biggest risk for ultra long-term investments is probably population.<\/p>\n\n\n\n
For the first time in human history we will likely see a declining human population not caused by starvation, but people having fewer kids voluntarily.<\/p>\n\n\n\n
However, this won\u2019t be an issue until 2050 at the earliest, and likely 2070\u20132090.<\/p>\n\n\n\n
In the meantime individual countries will see their populations falls. This has started with Japan, China and a few other places.<\/p>\n\n\n\n
Basically, countries which have low birthrates and tiny levels of migration.<\/p>\n\n\n\n
Such countries are certainly riskier to invest in than before, whereas the demographic boom could be great for some African countries.<\/p>\n\n\n\n
With that being said, humans have always been able to adapt. 200 years ago nobody would believe that we could feed all these people and have such high levels of GDP.<\/p>\n\n\n\n
With automation, AI and other new technologies coming, there is no guarantee that countries will stop growing even if they have lower populations.<\/p>\n\n\n\n
It is already happening where some countries with lower populations are still slightly growing their GDP.<\/p>\n\n\n\n
Historically, that would have been nearly impossible, where business was all about hard labour.<\/p>\n\n\n\n
<\/a><\/p>\n\n\n\n
What are the advantages of nominal vs PPP GDP comparisons?<\/strong><\/h2>\n\n\n\n
Let\u2019s look at what it is first.<\/p>\n\n\n\n
As per the OECD\u2019s definition:<\/p>\n\n\n\n
\u201cNominal gross domestic product (GDP) is GDP given in current prices, without adjustment for inflation. Current price estimates of GDP are obtained by expressing values of all goods and services produced in the current reporting period”<\/p>\n\n\n\n
PPP = exchange rate\u2014the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country. To understand PPP, let’s take a commonly used example, the price of a hamburger.<\/p>\n\n\n\n
So, PPP adjusts for currency movements and inflation.<\/p>\n\n\n\n
When it comes to individuals, PPP makes a lot of sense (GDP per capita adjusted for PPP).<\/p>\n\n\n\n
If you are earning $100,000 in Bulgaria or Bali after taxes, you can buy more things, and\/or save more, compared to earning $200,000 net in Central London or California.<\/p>\n\n\n\n
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