Are we living in a bubble?

This is a question which is talked about quite a lot nowadays. Jukka Oksaharju wrote a great article about this and this is a summary about it and my comments about the topic. I will put the direct link to post in the end of text, but Jukka's blog is written in Finnish.

First warning sign and the most important for me is if the company cuts its dividend. This is always mark of something serious, even more serious if the company is known of paying increasing dividends.

Second warning sign is the decreasing revenue and company loses its market share. This a mark of company products are going out of fashion and people are buying their products from competitors.

Third warning sign is if the company cuts its R&D expenses and leaders start to sell their stocks. Like Jukka said in his blog the cutting of R&D costs in a company like Coca-Cola is not a problem because this is so called "timeless" product, but this is a warning sign in a company which is acting in more cyclical markets and life-cycle of the products is max 25 years.

Fourth warning sign is if the P/E value of the company is much higher level than normally. This is what happened in Tech. crash in the beginning of this century.

And last warning sign in my list is if the company lay off it's personnel and still the profits are not increasing and the company does not win any market share from the competitors.

So as a summary, are we leaving a bubble or not? My opinion is that we are not. If we think a about in which cycle we are, I think we are somewhere in the middle in Europe and North America is about one or two year(s) ahead of us. This is clearly seen in company valuations Europe vs. North America.

Please leave a comment what you think.

Regards,

CVM

Link to Jukka's: blog: http://www.nordnetblogi.fi/kymmenen-varoittavaa-merkkia-porssissa/20/02/2017/

The Start

Like i already stated in introduction one goal of this blog is to follow my path to financial freedom. It is totally another topic will I achieve it or not. At least I tried 😀

Situation as today is:

Company	Shares	Prices (€)	Total (€)
KONECRANES PLC	161	34,15	5 498,15
Nordea Bank AB	43	11,36	488,48
Intrum Justitia AB	36	33,54	1 207,48
Ocean Yield	136	7,01	952,82
Austevoll Seafood	95	8,45	803,00
Norwegian Finans Hold.	93	8,68	807,20
Fingerprint Cards	174	5,50	957,38
Verkkokauppa	136	7,25	986,00
Suomen Hoivatilat	125	7,55	943,75
Albemarle	14	89,00	1 182,51
		Total Sum	13 826,77

Expected dividends for next 12 months will be around 450€ minus the tax.

I know already that there will be some changes in my portfolio during next few months and i will write an article about these in coming posts.

Unfortunately I don't have any nice graph from year 2016 to show you, but last year was really good what comes to investments. Total portfolio grew around 30%.

Targets for year 2017 is to achieve 10% growth, increase the amount of dividends and decrease the amount of Konecranes shares and replace those with some other stocks.

Regards,

CVM

Introduction

Hi,

I have been thinking about a long time will I start a blog or not. Finally I decided that I will. Let's see will I regret my decision 😀

First thing one to tell you is that English is not my native language and I am quite sure that you will notice during my posting (if not already).

The purpose of this blog will be following my investments, publishing book reviews, probably some self help topics (mainly for myself 😁) and some other topics which comes to my mind.

My personal goal is to increase my passive income so that those would cover my expenses. Let's say, where not there yet 😀

And finally few words about the me. So, I am a male in mid 30's living in northern part of Europe, Finland. I have two kids and working as an engineer in an international firm.

Regards,

CVM