 Good day, fellow investors. What stocks to buy in 2018? What stocks to buy now? Before answering that question, there is something more important to be answered and that's how are you building your portfolio over time? I'm currently busy building my model portfolio for my research platform and I want to share you some insights that I'm using to build a portfolio, a strong, well-balanced portfolio at this moment in time. What we have to check is what we know, what we don't know, and then what's the best strategy in relation to the possibilities of what can happen in the investment world so that we don't lose our shirt, but we end up ahead whatever happens. Let's see. So what we know, the general market is very risky because the price earnings ratio of the S&P 500 is 24.8. This means as risk is a function of price that if the price earnings ratio returns to the historical mean of 15, there is a potential drop of 700 to 1000 points of the S&P 500, which is an important risk when thinking about building portfolios. However, you don't have to invest in the S&P 500. There are always opportunities if you have a broad global perspective and are willing to do the research. For example, emerging markets were very, very good in 2017. I was bullish on Brazil commodities like copper, zinc, and nickel that did pretty well over 2017. However, since the peak in January, those are significantly down and in a downtrend as interest rates rise, which create trouble for emerging markets. This means that there will be other opportunities in emerging markets. So that's also a way you can look. Okay, what's cheap now and where should I invest? But that's a little bit more volatility and you have to see about your portfolio exposure. Now, what we don't know. We don't know for how long will interest rates go up. We don't know whether there will be a recession this year, next year, or there won't be a recession for the next five to seven years. Everything is possible and nobody never knows and can predict those things. Nobody. So also we have to invest keeping that in mind and allocating the portfolio exposure to the proper risk-reward allocation. So what to do? I'm looking at special situations, broadly diversified all-weather portfolio, including dollar cost averaging for now. For those that are not dollar cost averaging anymore, which are those that are a little bit older, I'll give something at the end. So my model portfolio will select a broad array of stocks across various sectors. There will be growth. I'm currently looking at solar. There will be emerging markets. I have looked something in China. There will be more China. There will be gold. There will be commodities and all those things, let's say 20 positions, that will be rebalanced according to what happens in the world. If developed markets, there will be also developed markets get cheaper, then the weight will be shifted towards that. If emerging markets are cheaper, then I shift towards that a little bit. Constant rebalancing because nobody can really know what can happen. If there is something really cheap like emerging markets were a year, two years ago, then you're a little bit overweight that. If there is something really expensive, then you're a little bit less overweight that. At the current moment, something interesting, for example, is the solar sector. Huge growth ahead. The technology has become cheaper. So you might watch my video tomorrow about the solar sector, if you're more interested, but something like that. And then you test research, research, stock by stock, stock by stock, intrinsic value, where do you find the bargain, margin of safety, which then leads you to a well-structured, long-term portfolio. And the nice thing is, especially if you're younger, if you can add each month, if you can add money each month, thus dollar cost average, then if stocks drop, you're even happier because you can buy more. However, if stocks go up and down, you can never know, and that's why you have to be prepared for everything. The strategy implies this. The diversification will come from underpriced good businesses, developed emerging markets, we're looking at the return on investment capital, emerging markets, population growth, there's good trends, development, hedges, gold, real assets, commodities, depending on the arising opportunities, under pressure sector or countries where there is value, so temporarily under pressure, secular growth trends and technological developments because the world is changing fast and of course always a margin of safety where it can be applied. So the point is to always think, okay, where can I find value, but also how much risk should I take? Without taking risk, the return will be low, but at some point, if you don't see risk as volatility, but you see risk as a potential to lose your principal, which is very low with some stocks, even if those are cheap, then it's a different story. And if you accept volatility, okay, I will buy more if the stock drops by 50%, I will see that as a blessing, then investing is made easy. So my job now is to dig into different sectors, countries, compare as many stocks as I can, find interesting values, what they are doing, what's going on in the trends and try to find the best positions for a strong long-term portfolio, stocks to watch about 40, 40, 50 stocks that I will be carefully watching in order to find the 20 best and in order to find the best investments in that month, $4 cost averaging strategy. So that's what I'm doing now. I'm looking forward to your comments as portfolio positioning comes ahead of stockpicking and how you see that and how you go about that. I'll see you in the next video and don't forget to check my research platform in the link below.