 Good day, fellow investors! If there is something I really love is to read and answer your comments. I think we created really good interaction here, really a community of investors. And from now on, each Friday I will do a video answering your comments, the most interesting comments, to discuss a little bit in depth what is going on, because there is so much value in them. And every morning when I wake up, I like to drink something and income and calmly answer your comments. So, let's start with answering the comments of today, where we will discuss bonds and stocks, are they overvalued, what to do when you made a mistake and is the price earnings ratio of the SAP 500 at 17 or at 25. And tomorrow there has been also a great comment about my network, but I really want to dedicate a full video to that to discuss my story, how I evolved over time and where I am now and where I see myself going in the future. But more about that tomorrow. Let's dig into the first three comments today. Stamat says, at this time, aren't both stocks and bonds overvalued? What percent stocks and bonds would Graham suggest today? As we made a lot of videos about Graham, it's a very, very good question. So, I answered, as for bonds, Buffett's average maturity is four months, so probably Graham would suggest the same, given the flat yield curve. The flat yield curve says that there is no, not a big difference between yields from a two year bond or from a year bond and a 10 or 30 year bond. So, if you take the shorter maturity, you really lower risk. If you take a long term maturity, then you are betting on that interest rates will go down and then the value of the long term maturity will go up. But that's perhaps a little bit too early to do now, especially as interest rates are rising and the Fed promises rises. When the trend shifts, you can time that pretty well. You might want to go long term bonds even at these low or a little bit higher interest rates. So, it's very interesting there. However, four month maturity, so you're practically not risking anything and those cannot be overvalued. Those are fairly priced and you will get what you invest in the next four months. So, short term maturities eliminate risk and give you some kind of return where you can wait for better risk rewarding opportunities. As for what would Graham do, I think he would really compare bonds stocks now. But when thinking about Graham, you have to put it in a dynamic perspective, in a timely perspective. I think that Graham would probably be, in 2007, have 50% bonds as the yield was much higher and he would be 50% stocks, let's say in 2007. Then in 2009, when the Cape ratio was still good, much better than the low interest rate, I think he would be 75% stocks and 25% bonds. And he would keep that due to the very low bond yields from 2009 to 2015 and only in 2015 at extreme high evaluations, he would start switching towards 50% stocks, 50% bonds. Keep in mind that stocks increased in value over the last two years, so you would be constantly selling stocks to keep the 50-50% percentage. As that happened and as bonds entered a bear market, then you would also be adding more bonds to that, so you would be keeping it in balance. As interest rates go higher, as those bonds get better yields and stocks yields go lower, it's always about earnings, Graham would probably go 25% in stocks now from 50, 40, 30 and 75% in as Buffett is doing short-term bonds. A lot of positions Buffett cannot sell, so his position is now 40% cash waiting in short-term bonds, so Graham would be, I think, leaning to such an allocation. Not much stocks, a lot of bonds and when things get better, buying cheaper. This we are talking of course about the defensive investor that invests in index funds and secure safe bonds. Another great question was from Jake Wilson. Hi Sven. Can I ask you on a day or a trade when you lose money, how to motivate yourself to bounce back from it? Jake really asks a novice question because he is seeing the stock market as a trading place where to make gains and profits in a short time. Secondly, he's emotional about what he does. He thinks that we can be good, be bad and that what happens on the stock market is related to us personally. To be a great investor, what happens in the stock market? First, anything can happen. You have to attach probabilities to what can go well and always think, okay, what's the worst case scenario and what's the probability for that? I always attach a 1% probability that I will lose all my money. And what would I do if that scenario develops? So that's always, and you will always see in my model portfolio, crazy risk is always 100% because there is practically only bonds short term bonds have not a 100% risk. So that's something you have to think ahead. Okay, if I invest here, what's the worst that can happen? So if it goes on towards the worst, you already know what you will do in that case. And this really removes the emotion from investing and becomes a risk reward perspective investing. And then you are not emotionally attached. Okay, say you say there is 20% chance that it goes bad and 80% chance that it goes well. If it goes bad 20% chance, do I buy more depending on what happens, earnings and in the business or I close my position and look for other opportunities. So before starting something, you have to know good, bad and what would I do? What will I do with that? So that's a key to develop, you will develop a true time if you're a novice investor, try to remove emotions from investing. Therefore, all that you invest in the stock market is something you don't need. It doesn't affect your lifestyle. And this really gives you a lot of opportunity to make better risk reward investments. If you chase gains, you want to do well for a while, but then you will lose when there is a real bear market and shit hits the fan. That's how usually the stock market works. A third comment from Naby Rose on CNBC, they have said multiple times that the SAP is valued at 17 times earning. Are they wrong or are you? I said, I don't know whether they are wrong, but I know I'm right. And here is the chart from multiple. So the problem is that it's much easier for Wall Street to sell something at the 17 multiple than at the 25 multiple. And the 17 multiple is what analysts estimate to be the forward price-to-earnings ratio. However, always those estimates are always adjusted downward. If we take a look at the estimates forecasts and what happens in reality when that happens, you can see that all of them really go down at least 10, 15, 20 percent, which when you look at adjusted earnings in relation to real earnings, that includes stock compensation, impairments, and all the other non-recurring that the management says, then you are quickly from 17 to 25. And that's something that really makes a difference. And as of course, Wall Street is selling 17, I think it is real 25. So see how that fits and what whom you should believe that's up to you. So thank you for watching. Tomorrow I'll put a video about my network, how I evolved over time. I'm really not that focused on network. I'm more focused on financial independence using that money for improving my lifestyle, my life, opportunities in my life. And that's what I have been doing for the past, I think 15, 17 years. Stock market returns really helped a lot. So more about that tomorrow. Thank you for watching. Looking forward to your comments. As always, I love to read them, answer them, and discuss them. See you in the next video tomorrow.