It’s 2022. The inflation is high and a recession is technically underway. When saving money means losing money, investing is not a hobby but a necessity for anyone who wants a good financial future. Despite the market turmoil, the best time to invest was 20 years ago and the next best time is now.
In fact, some of the biggest market crashes created the biggest investment success stories. But these didn’t happen by themselves, they happened when investors went against the grain and bought very good companies for a very good price.
Warren Buffett famously said, “Be fearful when others are greedy, and be greedy only when others are fearful.” Is this the time to be greedy? Only time will tell.
When the times are good it makes sense to own large tech stocks when they’re the ones outperforming the market. When the market is down there are no obvious options.
The investment market is split into two main approaches: passive investments like ETFs and index funds and active investments like stock picking, day trading, and using derivatives. For most people, the first one is too passive and the second is too risky.
TTFs are a new investment instrument we built to help you navigate these times of uncertainty, to invest in what you believe in and try new strategies.
Thematic Trading Fractional
People always have an instinctive understanding of what the next simple solution will be, and many retail investors tend to think in terms of themes rather than individual stocks. TTFs allow you to invest in concepts.
TTFs are stock collections that are targeted at a specific niche or cause. This is a very comfortable way to invest in a theme as a whole.
What excites you more, investing in a future of next-gen electric vehicles or having to pick between two companies that are yet to put a car on the road?
If semiconductors excite you, is it the idea of a futuristic world where anything is possible and robots work for us, or do you actually want to read into the fundamentals and P/E ratios of hundreds of companies in an industry to decide what to buy?
We believe investing needs to be close to your passions, because if you believe in something, you are more likely to enjoy being a part owner of that thing and you’re more likely to keep the investment discipline.
What we do in Gainy is we take complex things and research and package them into investment strategies that anyone can use to build a robust, personalized portfolio they will control. This way you can efficiently buy trends instead of picking single stocks.
These are model portfolios designed to diversify your risk and increase returns.
Each TTF has around 15-20 stocks, so it’s easy to get to know all your holdings and learn about an industry in an organic way rather than force feeding yourself gigabytes of information before you actually buy a stock.
Now, with the advance of fractional shares trading, these portfolios can be created directly on your brokerage account even with a modest initial capital.
They get rebalanced automatically if a new relevant company becomes available or a stock is underperforming.
Upgrading ETF to TTF
Exchange-Traded Funds or ETFs are an important instrument that has become a backbone of many investors’ portfolios. They let you buy many companies at once in a single asset, thus reducing your risk. The first ETF in the U.S. SPDR's SPY became available in 1993, almost 30 years ago.
It includes the companies in the S&P 500, you buy them in one asset. We love them, there is nothing wrong about them. What they do lack is personalization. Implicitly, you buy hundreds of companies, most of which you don’t know anything about.
It’s a very conservative investment and if you’re happy with this invest-and-forget approach, it might be good for you.
But why miss out on the opportunity to get higher returns by investing in rising trends like electric vehicles if you believe the future is electric? On the other hand, if you don’t, then there is probably something else you believe in.
If you want the flexibility of buying assets that suit your interests and investment goals without spending too much of your time on researching stocks, check out TTFs.
The Next Level
The idea of stock themes sounds simple because it feels so natural to us, but building an investment instrument was anything but simple. Because we had to reimagine the stock market in a new, human way, we had to work with a lot of data.
Thanks to this data we now have exclusive tools to build TTFs in any other way, not just by industry but by investment approach, for example our Inflation-Proof TTF, available in the app, an optimized selection of 21 stocks across industries that have historically performed best during high inflation: REITs, Food, Banks, Utilities, and other industries. Good luck researching for something like this on your own and then picking 21 stocks to buy that have the potential to outperform the S&P 500 exactly at a time like this.
In essence it is asset management but for people who want to invest in things they believe in. The best of both worlds — more active than buy-and-hold strategies and less tedious than active stock selection.
We like to call it investing on autopilot.
P.S. As a tasty bonus, we are partnering with some of your favorite investment gurus to feature their stock portfolios on Gainy in the form of TTFs. See them all in the app!
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