Updated: May 20
Today I was thinking about how convenient a crystal ball would be. Have we ever lived in more uncertain times? The endless news cycle continuously spews out toxicity. The country is more divided than ever. We have a disputed election which continues to mire us down. What will that mean for the country? For the world? For the markets? Are the rumors of a vaccine true, or will the global pandemic continue to rage unfettered? If we could just gaze longingly into an orb and see where we’re headed, it would for sure either ease, or amp up, our anxiety at the moment.
One thing’s for sure, uncertainty creates opportunity. This week has seen some of the largest trading volumes of 2020. Bets on a vaccine are raging. Tech is on a roller-coater ride. Hopes for new stimulus are high. All of which has got me thinking.
It’s time to get back to basics.
The house always wins
The stock market has long been the domain of speculators, but the real winners have always been the investors who aren’t swayed by news cycles or shiny objects. It’s been won by sound strategies and a buy and hold discipline. Sure, once in a while you get lucky with a short-term win, but often with a risk profile that is all or nothing. In times like these, a sound investor understands that this too shall pass. History has taught us that’s the case. The more we try to game the system, the harder and steeper the fall usually is.
Investing isn’t a parlor game or a Vegas get-rich-quick scheme. It’s based on research. Vision. Due diligence. A long-term mindset. It’s a system that can’t be cheated. Markets go up and markets go down, but over time, they have tended to rise. Historically, playing the long game has paid off. Making sure you aren’t keeping all your eggs in one basket has as well.
It's a small world, after all
Diversification and re-balancing of portfolios is as important as ever when volatility is high. We kept this in mind as we chose stocks to gift our members for funding recently. The share we gifted aren’t the usual suspects. They’re shares in things like international ETFs. These shares aren’t that widely known to beginning investors, but they allow for exposure to other possibly high-growth markets. Two we are currently incentivizing our customers with are INDA (which tracks companies in India) and EWZ (which tracks companies in Brazil). I picked those shares to open the minds of our members to what’s available out there in terms of diversification of a portfolio.
Our rewards aren’t just given to our customers to thank them, they’re a great way to educate and empower them. To expand their possibilities. To educate them. That’s our reason for being. Our purpose. To provide financial empowerment. To open our customer’s minds to the possibilities afforded to them. To give them access to new markets. To allow them to learn from one another. To share our revenues with them beyond what any other broker has ever attempted.
True financial empowerment
Do I have all the answers as to what the future holds? No, and if I did, I might not even be allowed to share them with you by the letter of the law. What I can do is try to always help our customers understand that in crazy times, fortune often favors the patient. Financial empowerment is achieved through sound strategies and calm decision-making. Informed decisions are usually better than hasty ones. It’s going to be a bumpy, unpredictable journey ahead . So buckle up, grip the steering wheel with both hands, and don’t make any sudden turns. It’s going to be a wild ride. But in the end, a steady hand can win the race.