The call was made the week before Christmas, as Tiho sat in his family home office in Australia, talking on the telephone with his German high net worth individual client.
At the time… every Tom, Dick, and Harry were buying US Dollars, while the Economist Magazine front page cover indicated an overwhelming optimism towards the reserve currency.
What was the view Tiho shared with his clients that made them a lot of money in 2017?
After a four-year rally in the US Dollar, it was time to become a contrarian and get out of the global reserve currency. A sell-off was coming.
The call he made?
For my Asian clients, I am recommending to denominate themselves towards the Aussie Dollar. And for you, and my other European clients, now is the time to hold all of your cash equivalents and savings in the Swedish Krona.
Over the next nine months, the US Dollar suffered one of the worst declines in the last two decades.
At the time of writing this, the Australian Dollar is up 11%, while the Swedish Krona almost 17%.
A huge move for global currencies, in such a short time.
The high net worth individuals who followed Tiho’s advice and moved their savings into these currencies made a fortune.
Consider, just by transferring $1 million of cash on your savings account from US Dollars towards a Swedish Krona account — would have made you $170,000 in profit.
Understanding that the Dollar was due for a major correction in 2017, Tiho started connecting the stock market dots.
A close financial friend in Canada, said of Tiho;
He has an ability to take all the surface level observations and go deeper evaluating the second and third order consequences to give a unique perspective.
So when this same close friend asked Tiho what his best idea for 2017 was, he answered…
Discussing the matter further, Tiho mentioned how depressed the stock market & local currency were, and how attractive valuations were luring him towards purchasing the equity index for his clients.
2017 will be the year to go into foreign assets, outside of the US.
In late October 2016, just weeks before the bottom in Polish stocks, Bloomberg declared that Poland had become a “Destroyed Investor Heaven”.
This was followed by the popular CNBC post titled, “Why Poland could be another looming European crisis” in December 2016.
Gloom and doom might get your website hits, but it doesn’t make profits.
Year to date, Poland is up over 50%, and its 2017 performance is nothing short of spectacular.
It is the number one performing country index in the world.
Call it a coincidence.
Call it luck.
Or call it investing skills.
But Tiho knew when it was time to finally buy.
As an independent thinker and deep value investor, Tiho is famous for looking through an Atlas and roaming the globe looking for the next major home run.
After all, talking about Tiho’s investment style, legendary hedge fund manager and billionaire investor Jim Rogers said:
Tiho is looking for opportunities where others aren’t and is usually buying assets others disregard.
You open up an atlas and there is always an investment to be made somewhere. I trust Tiho will find it.
I’m a big fan of yours.
And while Tiho’s investment themes and trade ideas are shared to clients and close friends only, he has made public calls, in real time, for all to watch.
Public Calls in 2017
At the same time Donald Trump was being inaugurated as the US President, global investors started panicking, especially about Mexico.
Political tensions were rising. Trade tariffs were on the way. There was even a border wall coming.
Bloomberg reminded us that the “Mexican Economy [Was] Facing a Tough 2017 Even Without Trump’s Wall”.
While according to CNBC, looting and protests were spreading across the country.
The Mexican stock market was sinking while the local currency was collapsing to new record lows.
There was literally blood on the streets.
On his Twitter account in January 2017, Tiho made a plethora of tweets alerting his followers towards not one, but two new investment ideas – both of which were in turmoil.
It was time to buy Mexico… and Turkey, too.
Looking at the returns realised since the middle of January, around the time the tweets were posted and the securities were purchased, the Mexican stock market has returned over 36%.
Meanwhile, the Turkish stock market index has managed to increase by 48%.
And that is in US Dollar terms, too.
Tiho has been generating investment themes like this for years.
That is exactly the reason why you will benefit by signing up to Tiho’s truly unique one-on-one investment consultation service.
One thing is clear.
There are only a handful of investors of this caliber and with these kind of timing skills.
And the majority of them are completely unaffordable and closed off to new investors.
This young man is the rising talent of the industry and this is your chance to develop a relationship with him.
2017 is not the only year Tiho made such calls, and it surely won’t be the last.
Some other notable calls over the years:
1. Buying US Stocks During the Eurozone Panic
2. Shorting Apple Stock In Late 2012
3. Buying the Bottom During the Chinese 2015 Crash
4. Selling Treasury Holdings In July 2016
Buying US Stocks during the Eurozone Panic
In late September 2011, the Eurozone Debt crisis was in full swing.
Most television commentators and market analysts were preparing the financial community for a Global Financial Crisis 2.0.
The European common currency was heading for a disaster and the PIIGS (Portugal, Italy, Ireland, Greece & Spain) were ‘apparently’ going to sink the global banking system.
Investors were preparing for a major meltdown.
In the midst of the storm, which started with a sharp and swift crash in August 2011 due to the US Debt Ceiling, Tiho decided it was time to become contrarian and turn bullish.
There was to be no recession.
Buy the US stock market.
In a popular public blog post, which received hundreds of thousands of views over the years, Tiho wrote out his step-by-step analysis on how and why he was ready to buy the S&P 500.
The two-part post, which was published on 28th of September and 02nd of October, proved to mark the exact bottom (on the actual day) for the US equity market.
The S&P 500 ETF (SPY) is up 160% since the purchase.
This has been one of the best calls Tiho has done over his investment career.
Source: A two-part post was originally posted on a private blog which isn’t live anymore. However, you can still download the original articles by clicking here.
Shorting Apple Stock in late 2012
One of Tiho’s most specular calls was shorting the Apple stock in late 2012.
In September 2012, the Apple stock was approaching $700 per share, before the old stock split.
The uptrend was becoming euphoric and investors everywhere were jumping over themselves to purchase Apple stocks.
It was around the middle of September that Tiho stunned his followers with a short and brief post, indicating his recent trade.
Tiho shorted Apple against the whole Wall Street crowd, including some of the best hedge fund managers on the planet.
The price of the stock started to unravel within days.
Once again, he had timed his entry spot on, within a week of the top.
Over the following nine months, Apple stock fell by a staggering 45%!
By the middle of 2013, Tiho decided that it was time to cover his shorts.
It is important to note that it is not wise to short a stock, especially one such as Apple, in an uptrend that has been extremely powerful.
On the contrary, it would have been much wiser to trade with the trend and continue to ride Apple gains on the upside.
Nevertheless, this is just another testament to Tiho’s sharp-witted ability to find opportunities where others cannot.
One of the most amazing entry and exit point trades were made and published in real time, for all of the public to see.
Buying the bottom during the Chinese 2015 Crash
Several investors should remember the turmoil China created in the fall of 2015.
Their stock market was crashing and fears of a hard landing were rippling across the worlds asset prices.
In early September 2015, just as prices approached major lows, Tiho was quoted by MarketWatch as turning bullish against the gloom and doom forecasters once more.
Market bears have been arguing that China is on a “treadmill to hell”.
But Short Side of Long blogger Tiho Brkan has highlighted a simple indicator now flashing a buy signal — the price-earnings ratio for Chinese H-shares. This has slid to the lowest level since 2001, as shown in the chart above.
“Valuations are now as attractive as they were during the bottoming part of the Tech Crash in early 2000s and the Global Financial Crisis of 2008,” Brkan noted in a blog post on Friday.
“I admit that valuations could get lower still, but savvy investors and contrarians alike know that the best time to buy is when others are panic selling and predicting ‘black swan’ events.”
His call comes as Chinese H-shares — stocks of Chinese companies traded on the Hong Kong Stock Exchange — have dropped in 14 out of the past 15 sessions.
“While I admit that the Chinese economy is currently struggling and faces the hard time ahead, the prospect this nation has in the long run are significant on the world scale,” Brkan said. “Its stock market will be one of the best ways to express this long term potential, but the key always remains the price one pays for future growth.”
Just as the famous quote by Warren Buffett says — price is what you pay, value is what you get. Tiho demonstrated once more his ability to buy deep value and act rationally in a world full of gloom and doomers.
Source: MarketWatch website published Tiho’s bullish call on China in real time during early September 2015 low. He is still holding this investment today.
When a private investor — with an extraordinary ability to execute — starts to become noticed by the community, there is no doubt that certain people will remind us of his mistakes.
One thing is certain.
There is no such thing as a perfect investor, who never makes mistakes.
And Tiho has made his fair share.
After all, when asked about how he became a good market timer and a profitable investor, he is quoted saying:
It’s my mistakes, and a lot of those mistakes, that helped me become a good investor.
Mistakes are not something that should bother traders because they understand that the most important concept of protecting capital is risk management.
Investing for high returns is the offensive play of your portfolio.
Nonetheless, defensive play is just as important.
The ability to protect from permanent loss of capital and the foresight to see major sell-offs, helps preserve your capital in the long run.
Selling Treasury Holdings In July 2016
A recent example of a defensive play was Tiho’s uncanny ability to sense the herd mentality and group think behavior of investors who were chasing safe-haven assets.
In early July 2016, after making strong returns holding defensive asset classes such as Treasury Bonds & Gold, Tiho decided it was time to head for the exits.
He also alerted the public. Market Watch wrote:
…you easily could argue playing defense should work well in general these days — given the wide range of worries about the U.S., Brexit, China, you name it. Right?
No, actually — bonds, gold, utilities and more are all likely to lose ground after their recent big gains, according to today’s call. It comes from the Short Side of Long’s Tiho Brkan, and it’s based on price action, rather than any new economic release.
This is a call for short- and medium-term timeframes. Brkan actually holds such defensive plays in his portfolio, which has gotten a boost from their advances, he says.
A range of asset classes have become “overbought, over-extended and prone to a correction” in the short and medium term, the Short Side of Long’s Brkan says.
“Despite the fact that my portfolio has benefited tremendously, I now hold an opinion that we are about to mean revert,” the financial blogger writes in his latest post.
“I would advise my readers to be very cautious when it comes to adding new capital towards the overall bond market, real estate and precious metals sectors.”
Over the next 5 months, long duration Treasury Bonds declined by 15% — one of the largest declines in decades.
Interestingly, Gold declined for 5 straight months and also fell by 15%.
Remarkably, in a show of astounding skills, Tiho turned bullish on both by years end.
Both asset classes have done very well in 2017.
Source: MarketWatch published Tiho’s call in real time on 08th of July 2016 with a title Defensive investments are in big trouble.
There are many other examples, all of which were published in real time, showing Tiho’s extraordinary ability to buy the right assets, at the right time.
By now you’re probably thinking that a service like this most likely costs tens of thousands of dollars per month.
After all, other traders with self-proclaimed trading success stories, have charged such sums before, while delivering below average — and at times — mediocre performance.
This is not what you’ll receive with the Atlas Investor service.
If you would like to have your wealth managed by this skillful investor, or if you would like Tiho to guide you with monthly investment consulting – you’ve come to the right place.
Tiho will diversify your portfolio, grow your wealth, and reduce your downside risk.
If you’re tired of losing money in the market and watching your savings underperform year by year, as inflation eats away your purchasing power — its time to talk to a real professional.
An investor with a proven track record, that has been compounding money with incredible success over the last few years.