https://www.alainguillot.com/why-passive-investing-feels-wrong-but-is-actually-right-for-your-portfolio/ At one point in my life, I worked as a financial advisor. Supposedly my job was to help people manage their finances, offer advice on investments, and guide them toward financial security. However, it didn’t take long for me to realize that the financial industry was heavily tilted in favor of institutions and advisors—leaving the clients, the very people we were supposed to help, at a disadvantage. I saw how complex financial products were often pushed, not because they were in the client’s best interest, but because they generated the most fees for the advisor or the firm. It was disheartening, and it wasn’t the kind of impact I wanted to have. So, I made the decision to leave the industry and became a personal finance blogger, where I could share my ideas and insights without any conflict of interest. My Simple Approach to Investing: The S&P 500 Index I have been blogging now for fifteen years and since then, many friends and acquaintances have come to me with questions about investing. They’re eager to know where they should put their money, and they were often expecting some intricate advice or a secret strategy. My answer, however has always been simple and straightforward: “Just buy the S&P 500 index, don’t trade, don’t watch the news, don’t try to outsmart the market. Just let your money grow over time.” Why This Approach Works The S&P 500 index represents the 500 largest companies in the U.S. It’s diversified, has a strong track record of long-term performance, and, most importantly, it’s passive, which keeps expenses low and avoids triggering taxable events. You’re not trying to beat the market, time it, or chase the latest trends. Instead, you’re simply investing in the long-term growth of the economy. This strategy avoids unnecessary fees, emotional decision-making, and the high risks that come with attempting to outguess the market. History has shown that passive investing in an index like the S&P 500 consistently outperforms most active strategies over time. The Reality: Few People Follow This Advice Unfortunately, very few of the people who come to me for advice have followed through with this simple strategy. Some ignore it entirely, convinced they can pick the next winning stock or sector. Others believe they are smarter than the market and dive into stock trading. Many have been drawn into the excitement of cryptocurrencies, where some have won big, but many have also lost significant amounts of money. The idea of “doing nothing” when it comes to investing seems too counterintuitive. As humans, we’re often wired to act, to make changes, and to react to every piece of news we hear. It’s difficult for many to accept that, sometimes, the best course of action is no action at all. The Long-Term Results Over time, I am almost certain that those who have taken my advice—putting their money into a simple, passive fund like the S&P 500—have done much better than those who thought they could outsmart the market. Those who stuck to a straightforward strategy have avoided costly mistakes, high fees, and the stress of constantly managing their investments. Investing doesn’t need to be complicated. Sometimes, the simplest strategies are the most effective. If there’s one lesson I hope more people take from my experience, it’s this: In the long run, the market rewards patience and consistency far more than it rewards excitement and risk-taking.

https://www.alainguillot.com/what-would-i-do-with-1000000/ Have you ever imagined what you would do if you suddenly had one million dollars in your bank account? One of the first milestones in financial achievement is reaching one million dollars. Although inflation has diminished its value over time, it remains a significant sum. It’s not just about the money—it’s about the security, freedom, and opportunities it represents. When I came to Canada as an immigrant (24 years ago) I had nothing, no money, no education, no connections, but I had a head full of dreams and ambitions and I was determined to achieve a life of economic and social success. I was then and I remain now a dreamer and an optimist. I think that pessimists people always sound smart, they always find the shortcomings of any plan, but the world has been built by optimist, by people who did things that have never been done before. One of my first goals was to become a millionaire but along the way I discovered that I didn’t have to be a millionaire to have a happy and fulfilling life and becoming a millionaire was no longer my main priority. Recently, however, something changed in my life that made me refocus on my initial financial goal to become a millionaire. The building where I have been living for the past 10 years was sold, and because I’m one of the tenants paying the lowest rent, the new landlord has asked me to move out. So I started searching for new rental properties and I realized how fortunate I’ve been to pay such low rent. The apartments I’m seeing now they are crap, they are very expensive for what they offer. This experience has made it clear that I need to increase my income to maintain my current lifestyle. So, I asked myself: Would my predicament go away if I had a million dollars? What would I do with one million dollars? What Would I Do with $1,000,000? I live in Le Plateau, a trendy neighborhood in Montreal, and I’d like to continue living here. With a million dollars, I would buy a one-bedroom condo, which in Montreal is called a 3½—one bedroom, a living room, a kitchen, and a bathroom. The condos I like cost around $400,000 CAD. I would invest the remaining $600,000 in the S&P 500 index. Assuming the market grows at 6% per year, that would generate around $36,000 annually, or $3,000 per month. Since the property would be paid off, that income would allow me to live comfortably for the rest of my life. I am not looking for fancy-cars, brand-name clothing, or five-star restaurants. What I am looking for is freedom to stay in a neighborhood that I like, in a place that is not ugly, and just enough income to pay for my basic living expenses such as food, heat, and internet connection. What would you do with $1,000,000 Achieve Financial Independence: One million dollars is enough to achieve financial independence. Following the 4% rule, you could withdraw about $40,000 per year indefinitely. Real Estate Investing: With one million dollars, you could buy up to five million dollars in real estate by putting 20% down on each property. That could create a steady stream of rental income while giving you plenty of leisure time. Start a Business: Some businesses require significant startup capital. Alternatively, you could buy into an expensive franchise and grow it from there. Travel in Luxury: If your basic living expenses are covered by a pension or other income, why not enjoy life? Travel to your favorite destinations, fly first class, and stay in the finest hotels—until the money runs out. Give Back to the Community: For some people, the greatest joy comes from giving. There are countless causes that need support, from education and healthcare to environmental conservation and social justice. The community speaks My friend Cheryl Williams, who is in a similar situation as me, said she would do something similar—buy a condo and invest the rest.

https://www.alainguillot.com/whats-the-next-mega-trend/ Throughout history, several major economic trends have shaped the world. These include: Agricultural Revolution (~10,000 BCE): The transition from hunter-gatherer societies to settled agricultural communities, leading to the rise of the first civilizations. Invention of the Printing Press (1440s): By Johannes Gutenberg¹, revolutionizing communication and spreading knowledge, which fueled the Renaissance² and Reformation³. Industrial Revolution (18th-19th Century): The introduction of machinery, including the steam engine, transformed manufacturing and transportation. Electrification (Late 19th Century): The widespread adoption of electricity transformed industries, homes, and cities. Invention of the Internet (1960s-1990s): This development revolutionized global communication, commerce, and information access. While many companies have emerged since the Internet’s inception, notable winners include Amazon, Google, and Microsoft. While past performance is no guarantee of future results, studying historical trends and outcomes can help us make better decisions. Which are the trends of the present Artificial Intelligence (AI): Investments in AI-driven companies continue to be a major trend, creating significant changes in how we work and study. Companies like Nvidia, Microsoft, Open AI (the creator of ChatGPT), and Alphabet (Google) are leaders in AI innovation. Pharmaceuticals: New weight loss drugs like Wegovy and Ozempic are attracting significant investor attention. Companies like Novo Nordisk and Eli Lilly, the creators of these drugs, have seen their stock prices increase by approximately 100% per year. Which are the trends of the future This raises an intriguing question: Are there investments that haven’t yet entered the mainstream where early adopters could reap substantial returns? No one can predict the future, but I will put my money on Technology Select Sector SPDR Fund (XLK) ($209.35) which is heavily weighted toward companies like Apple, Microsoft, and Nvidia and Communication Services Select Sector SPDR Fund (XLC) ($85.56) which include companies such as Alphabet (Google), Meta Platforms (Facebook), and Disney. With the exception of Disney, all of those companies have have huge networking effects, and monopoly powers that only the government could derail their dominance. During the past 12 months XLK is up 21.87%, the S&P 500 is up 20%, and XLC is up 27.51% Which industries do you think will lead in the next 12 months?