[00:01] have prepared an extremely useful educational video on stocks and bonds for you. In it, I will explain in the simplest terms what it is and how to get passive income from it with minimal risk. And I will show everything using [00:15] my own example, that is, what I use myself and what I earn money from. For example, six months ago I informed you that I had assembled a portfolio of federal loan bonds. And this portfolio has [00:34] receive passive income from it every month . I'll tell you why I decided to put together this portfolio back then and why I'll now gradually transfer funds from bonds to dividend-paying stocks. I'd also like to remind you that we're [00:47] working on a start-to-finance investment project, where I'm showing you how to increase your capital with an average salary and achieve optimal passive income so you can live solely on passive income. We've [01:02] been investing heavily in Russian dividend stocks lately, and in this video I'll explain why we decided to do so. That is, what I relied on on a global level, so that you understand the logic behind all my new purchases and why the Russian market [01:16] is currently promising for investment. We will also investment. We will also talk about the end of the war in the near future, judging by the cyclical nature. So, what are bonds? In simple terms, [01:29] bonds are when we lend money to the government or a company. That is, bonds are government and, accordingly, corporate. There are also other types of bonds, but these are the main ones. [01:42] State loans are when we lend to the state and after some time we receive our funds back with interest. Corporate loans are when we lend money to a company and after a while we receive the funds back with interest. Corporate [01:55] bonds also have higher yields, but there is also an increased risk of losing your investment. Government bonds have a lower yield, but there is a minimal risk of loss of funds. What are bonds for anyway [02:08] ? The first function is security. That is, when investing in bonds, you and I demonstrate diversification. And we know in advance what percentage of return we will receive, say, once every six months, and [02:22] maturity. I'll explain what bond redemption is a little later . That is, we know the result in advance. We can easily predict the return we will ultimately receive. And first and foremost, this is done, of course, for [02:36] the safety of our capital, our savings. And the second is the property of liquidity. That is, let's say we can invest in bonds to save money for a while and gradually increase our capital through passive [02:50] income. And then, when the time comes, we can withdraw this portion of funds from for example, into dividend stocks, into cryptocurrency, into foreign stocks, precious metals, or something else. And bonds are a conservative [03:03] instrument, so they are best used by people over 40-50 years old to preserve their capital. Because the older a person is, the less he can invest. If you are under 40-50 years old, then it is better for you to invest all your [03:18] funds in dividend stocks. So the question is, why did I, a 26-year-old, invest a large sum of money in federal loan bonds? I'll explain this to you a little later, but for now let's move on . There are [03:31] three different ways to make money when you buy a bond. The first way is coupons. Coupons, in simple terms, are interest that the government pays us when we lend money to it. That is, when we buy a bond. And the [03:45] state returns these same percentages using coupons. Coupons are paid regularly for as long as you and I hold the bond or until the maturity date. And the second type of income is repayment. That is, [04:00] repayment is the date when we will be fully repaid the funds that we lent. That is, before this, we were paid coupons, that is, interest. And when the maturity date arrives, then we are returned the full amount of funds, that [04:14] is, the face value. Each bond has its own value. The original value is equal to the face value. Let's say if a bond costs 1,000 rubles, then its initial cost is 1,000 rubles. Depending on various events and the [04:29] economic situation, the price of a bond may decrease or, accordingly, increase. If we buy a bond below its par value, that is, below 1,000 rubles, then we can ultimately receive a [04:42] higher yield by the maturity date, because the par value is paid on the maturity date. Let's say we bought a bond at a price of 500 rubles. and the maturity date has arrived , then we are paid 1,000 rubles for each bond. It turns out that by the [04:58] maturity date we can earn twice as much. This is the third way to make money on bonds, that is, on the difference in prices of these very bonds. You can, for example, buy a bond cheaper and sell it at a higher price, or buy it cheaper and wait until the [05:14] maturity date so that we are paid the full face value. It was all theory. Now let's move directly to practice, so that it is clearer. So, I invest through the broker T- investments. You can invest [05:26] through absolutely any broker that has a license, because the conditions are approximately the same everywhere. On the screen you can see some of the bonds that are in my portfolio. And government bonds are called [05:38] OFZ, that is, federal loan bonds. You can use your broker's search engine to enter "OFZ" and find the federal loan bonds you want to buy. But I want to warn you that it’s too late to buy them now. I'm just [05:52] teaching you how to use this financial instrument. There are several types of federal loan bonds . And we will only consider the one that I personally use. These are federal loan bonds with a [06:06] federal loan bonds with a constant coupon yield. constant coupon yield. These bonds begin with the number 26. Please note that each of my OFZs begins with this number. And then the [06:19] number of the bond itself is written. That is, 26 is a type of bond with a constant coupon income. Now let me open one of the bonds and we'll see what to look for . The first thing to [06:34] pay attention to, of course, is the issuer's rating. That is, if the rating is high, then it is a reliable bond that can be purchased. Now we scroll down a little and find information about the release. So, next [06:48] we pay attention to the yield to maturity and the bond's maturity date. Yield to maturity, of course, varies depending on the current market phase. And I recommend using a minimum yield to [07:02] using a minimum yield to maturity greater than 15%. That is, 15-20% is the optimal yield to maturity. It is better not to buy the lower one, . And, accordingly, the date of redemption of the bonds. That is, bonds [07:16] can be short-term, medium-term and long-term. Here the maturity date is in 2031, so the bond is, uh, something between medium-term and long-term. That is, when this very redemption date arrives, you and I will receive the par value of [07:31] each bond. The denomination is written in this place, and the denomination of one is written in this place, and the denomination of one OFZ is equal to 1,000 rubles. Accordingly, OFZ is equal to 1,000 rubles. Accordingly, if the bond price is currently 800 rubles, then [07:44] by the maturity date we will receive 1,000 rubles for each bond we bought. It turns out that from each purchased bond by the maturity date we will receive a profit of 200 rubles. and I don't read coupon yields. Let's scroll up the page and [08:00] take a look at the coupons. Just below we can find the payment schedule for these very coupons. And let's say we can buy bonds in such a way as to receive passive income every month, which is basically what I did. Let's say the coupons on this [08:14] bond are paid in September and March. To make it much easier to navigate the bonds we've purchased, we can enter all of our purchases into the SNB service. The link is in the description. In this service, [08:27] you can enter all your purchases in different markets and, accordingly, create portfolios. For example, here we can open the payment calendar and see when and how much we receive. I invested such an amount that I would [08:40] receive approximately $600 every month . Here in the calendar you can see when exactly the bond coupons are paid. Also, if I scroll a little to the right, let's say it's 2028, then the bonds will start [08:55] to be redeemed, and then I will start to receive the greatest profit from them. And in this way, thanks to portfolio management, we can monitor coupon payments, bond redemptions, and, accordingly, the yield we ultimately [09:07] receive. Now I want to share with you five charts to look at when buying or selling bonds. The first chart is federal loan bonds with a maturity of 5 years. Note that [09:23] recently the yield to maturity has reached around 20%. I marked two lines. The first line is, accordingly, 15% and the second line is accordingly, 15% and the second line is 7%. If our yield to maturity [09:37] becomes higher than 15%, then this is a good signal to buy. Let's say this has only happened four times in history. And then the yield to maturity dropped sharply. It was in this place, in this place, in this place and it happened recently. And [09:51] if our yield to maturity approaches the 7% line, then in this case this indicates that the yield is extremely low and it is absolutely impossible to buy bonds . And if you held them for some time with a yield of 20 or 15%, [10:07] then you can sell them profitably and make money on the difference in the prices of these very bonds. Now the yield is already below 15%, so it’s too late to buy bonds. There is a similar schedule for ten-year government [10:20] bonds. We mark the same lines and use them as our guide. And the chart of fifteen-year bonds. It's the same here . We mark the lines and use them as a guide. You can find these charts by the tickers at the top left. [10:36] The ticker is located at this location. You just type it into the search and find this chart. We've looked at government bond yield charts, and now we have a chart of the government bond price index. [10:49] Please note that I have marked the 100 line at the bottom. This means that if the price approaches this level, then the bonds are at an extremely favorable point for purchase. I bought bonds at this place six months ago, and [11:06] now the index has risen quite a bit. This means that the price of the bond has increased, and I received income from the increase in the price of these bonds and can now sell them at a profit. Therefore, I recommend you buy bonds [11:20] only if we are in the 100-line region. It is also worth paying also worth paying attention to the Central Bank's key rate . It recently fell in line with our forecast, [11:32] meaning that bond yields will decline and bond prices will rise. That is, if the rate is high, then this is a good time to buy bonds, especially long-term ones. If the rate is at the bottom, then it is a bad [11:47] time, and in such a case, buying a bond should not be considered. And as the key rate decreases, the cost of these bonds will increase and the yield will decrease. Therefore, when the [12:00] key rate decreases, bonds are usually sold, especially medium-term ones, and funds are transferred to other assets. And these assets are shares, because when the key rate decreases, as a rule, our share prices rise. [12:14] This has a positive effect on the stock market. So now we'll talk about shares and dividends. So, what are stocks? The company issues certain shares, and when we buy a share, we become co-owners of the [12:29] company, co-owners of the business. Therefore, when a company makes a profit, it can pay out part of its funds to shareholders in the form of dividends. That is, dividends are a [12:41] portion of the profit that a company receives and that it pays out to those people who bought shares. For example, let's consider the company Surgneftegaz. And I'll show you right away what you should pay attention to. So, in the stock market, [12:56] fundamental analysis is applicable. Fundamental analysis is the determination of the true value of an asset based on any internal or external factors in the market. But I would like to point out right away that fundamental analysis does not [13:09] provide 100% accuracy, and factors may vary depending on the current market phase. Let's say if the situation is negative, then the factors will be negative. If the situation is positive, then the factors are also likely to be [13:22] positive. Therefore, among other things, we need to be able to determine the current market phase based on cyclicality. But still, here we are primarily looking at the company’s internals, that is, at its indicators. Opening the indicators. And [13:36] here we see, accordingly, the company's financial indicators. At this point, we need to pay attention to the PI indicator, that is, the ratio of the stock price to its earnings. The lower the PIN, the more undervalued the company. A [13:50] very low reading may indicate extreme undervaluation. Let's say here we see an indicator of 0.6. This indicator shows how many years of the company's current profit will pay for the cost of this [14:05] company itself. Let's say here we see that the company's profit will pay for its cost in 0.6 years, that is, in less than a year. For comparison, let's look at the financial performance of Nvidia shares. And here the P value is almost 56. It is [14:22] in this place. This means that it would take the company 56 years to recoup its cost with current profits. And a high P-value already indicates an extremely strong overvaluation of this company. Therefore, to [14:37] maximize profits, it is recommended to invest in those stocks where the P-value is low, that is, in extremely undervalued stocks. Let's move on with you. If we plan to receive dividends, then we need to pay attention to the [14:51] dividend history. There is a tab here with dividends. In principle, history of any company if it pays them. And we look at history. Regular dividend payments without any gaps are important to us. Let's say here we see that, a, [15:05] Surgutneftegas has been paying dividends every year for almost 20 years now. This is an extremely good dividend history, making this company's shares a very promising dividend stock. And, of course, it’s worth [15:20] paying attention to the percentage income of these very dividends. And here we see that the interest income is extremely low. But these are ordinary shares, and there are also preferred shares. And, as a rule, dividends are paid higher [15:36] on preferred shares. So, I have already opened Surgutneftegaz preferred shares. And now we will look at the dividend history of these very shares. And here we see that the percentages are already quite high. An extremely [15:50] good dividend history, an extremely good dividend yield, and an extremely low PI ratio tell us that this is a very good stock to only to these indicators, but, of course, also to the price chart in order to [16:06] analyze the current market phase of the asset. For example, I opened a chart of common stocks. You and I are proficient in many types of analysis, so here, yes, judging by [16:20] my vision, a sideways range is more likely to form, from which the price is more likely to break out and ultimately realize its potential. And if we buy shares within this range and the price of these shares rises, then in this case [16:34] we will earn both from the rise in the price of these shares and from the extremely high dividend yield. And the more shares we buy at a low price, the more dividends we can receive, of course. Common stocks correlate with [16:48] common stocks rise, then, accordingly, by correlation, preferred stocks will also rise. I'd like to point out one more thing about the PIN indicator. A low figure may not always indicate that the shares are extremely undervalued [17:02] . For example, shares of the company Surgutneftegaz have low transparency for investors, so it is [17:14] indicator also needs to be compared not only in the context of different markets, but also in the context of the same sectors. Stocks are divided into sectors, for example, the energy sector, the financial sector. And you need to look at the undervaluation of the company's shares [17:29] compared to other shares in the same sector. But this is already if we delve into fundamental analysis. In fact, I have already given you everything you need to choose stocks . And now I would like to answer the question of why I consider the Russian [17:43] market to be extremely promising, given that , for example, the American market demonstrated greater returns during the 510-20 period . I'll answer this question. Here's a chart of the S&P 500 index. And, first of all, the [17:58] American market is, of course, extremely overheated. This is evidenced, firstly, by the cyclicality that is present in all American indices. And, judging by the structure, a correction is expected here, perhaps even in the [18:10] near future by 60-70%. When this correction happens, then it will be a very good time to buy American stocks, but clearly not now. This is also evidenced by the extremely high Pнаei indicator of the shares. [18:24] For example, as you've already seen, Nvidia shares are trading at almost 60. This is an extremely high, prohibitive figure. And in general, the average PIN indicator for US stocks is in the region of 20-30%. The Russian market, on the contrary, is currently extremely [18:40] undervalued, given the financial performance of shares. That is, the average PI indicator for Russian company shares is approximately 5-7, that is, three times less than the US market. Given the weakening of the ruble and the various crises, [18:54] there is currently extreme undervaluation and extreme distrust of companies on the Russian market, and investors are predicting the future based on the past. But let's look, for example, at the dollar-ruble chart. Weekly [19:08] timeframe. We saw the crisis in 1998, in 2008, in 2014 and in 1998, in 2008, in 2014 and in 2022. Four crises in a row. And during [19:20] these crises the ruble weakened. And the question is whether this trend will continue . Of course, from a global perspective, I expect a renewal of the previous global maximum. From the current rate, it may increase [19:34] by approximately 100%. But I don't expect the same dynamics as before. Let's say, if we look at the whole picture, the rate has grown by about And if we expect this dynamic [19:48] to continue, then the ruble exchange rate should be around 5,000 rubles. per dollar. But I remind you that the market is cyclical, and a negative situation cannot last forever. Sooner or later the pendulum will swing in the [20:01] this situation, and the fact that we are already at war, the only thing more terrible could be a nuclear war. But in the event of a nuclear war, we will no longer need investments. Accordingly, I don’t think the [20:14] situation will get worse, because we have almost reached the peak. On the contrary, I believe that the situation will gradually get better and better. And ultimately, even after the maximum is updated, we [20:26] will ultimately see a fairly significant strengthening of the ruble. Or at least we will be moving within a narrow range for a long time. As I already said, the situation is quite sad. Many crises have already passed, and the pendulum [20:39] Many crises have already passed, and the pendulum is already in that very phase when it will direction, towards the positive. And this applies not only to the Russian market, but to the entire CIS market. Investing in stocks [20:51] CIS market. Investing in stocks during a war is a bet on the end of that war and the arrival of a long-awaited peace. If we look at the dollar-hryvnia chart, then, judging by the cyclical nature, a decline is expected here. [21:04] A decline is a positive situation. And it is quite possible that the military conflict will end in the near future. The end of the military conflict means a positive military conflict means a positive situation for the CIS market. And given [21:18] the potential of the shares, that is, the shares can grow by hundreds of percent compared to the Russian market, and taking into account all the factors that I previously mentioned, I believe that the Russian market is currently extremely undervalued and extremely promising. These, friends, are my [21:31] thoughts. My team and I have done a lot of work on this video, so leave a comment to support it. Also subscribe to the Telegram channel, the link is in the description. I wish everyone all the best, [21:44] profit, and victory. I love you all and bye to everyone .