Investing after covid
To be terrified or to be positive?
To pander fear or pander excitement?
When the term covid comes up, it elicits so many different emotions and then we mixing in the word investing?
As alluded to above there are always two choices we can approach when it comes to media. Fear or optimism. I’ll forewarn you, this is going to be skewed towards the rare, but historically accurate optimistic side as we discuss growing your money safely!
Because that’s what investing is about, right?
Having your money grow safely, consistently and hopefully exponentially!
Your money becoming a powerful force that begins to earn more than you in your current job or role, out pacing your debts and giving you a life of unapologetic freedom! This is the dream! Living and giving, sailing and flying, napping and reading, spending time with your family and scaring your gift to provide abundance for the world!
“The crash is coming.”
“It’s inevitable, we are in a huge bubble.”
“The Dow Jones is going to drop 90% in the next 2 years.”
You have seen these headlines. I know you have.
Imagine the stock market, doubling (that’s right, going up 100%) even though the globe is essentially in a lockdown.
Well, that is what happened! Notice the chart below of the S&P500
The massive takeaway SHOULD be, if your managed accounts, portfolios or investments are NOT up at least 100% in the last year, you are doing something horribly wrong.
Newton’s first law states that if a body is at rest or moving at a constant speed in a straight line, it will remain at rest or keep moving in a straight line at constant speed unless it is acted upon by a force.
The force that would be required at this stage would be a massive amount of selling. The challenge with that selling would be, it would allow all the market participants who are NOT in, to buy.
The selling would allow those on the fence, those who are waiting for a dip, the individuals investors who know “we are too high” to get in.
Assets across the world have been increasing dramatically! And it’s not because of inflated numbers, it is due to lack of supply, increasing demand and richer individuals.
Houses, watches, stocks, crypto currencies, even cars and boats are increasing in value because of the squeeze in supply. Factories were shut down across the world, workers have been unable to create and build and this is causing a supply issue. Therefore, my professional prognosis of the US stock market is, even though it is inflated and we will have some small corrections in the near future, those will get bought up with all of the cash and ultra scared participants on the sidelines.
Will we see a great depression? Sure. Yes. We have too. It’s the cycle of money. I personally believe its 9-14 years away. The last HUGE market melt of catastrophic proportions was 1929. We are yet 100 years from that.
And during that time the world had just survived a huge pandemic, the Spanish Flu. And then, the roaring 20’s occurred. I believe that’s where we are RIGHT NOW. The roaring 20’s. Enjoy the ride up, while it lasts! Invest, be wise and get educated!! Opportunities, money, growth and freedom are right at your fingertips!!