There’s an image in people’s minds of the stock market being a roller coaster. In other words, you start at one point, go through a wild ride with a lot of ups and downs, twists and turns, and then, at the end of the ride, you basically don’t feel well and end up in the same spot.
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It’s all a matter of perspective. Most people wait for a “good reason” to get into the stock market. They want a shortcut — or better yet, a crystal ball. The truth is that there’s always a good reason to invest now, because everyday stocks have an expected rate of return. With this mindset, you’re always in. You just have to stay in at all times, and you will get the returns.
Most investors are buying based on past performance thinking that the future will replicate the past. Take for example, cryptocurrency: Bitcoin wasn’t very appealing to the masses at $1 in recent years, but when it started trading in the 5,000 -10,000 range it attracted many new entrants. The new entrants are most likely buying because they think the future will mimic the past. Continue reading
{1:22 minutes to read} All stocks have to be owned by someone. Investors essentially have long-term ownership in the world’s businesses. Like any owners, they get paid last. But often, especially if they globally diversify their portfolio, they also get paid most. And, like any owners, they are often the first ones affected by revenue changes, which can be scary. Managing human emotions are the major driving force behind investor success.
The world belongs to the optimists. No, really. Being able to see a positive future can get you through temporary turbulence, rewarding you in the long run.
When the markets crashed 6 years ago, many people withdrew. This is a common phenomenon; typically, people stay in the market when it’s good and leave when it’s bad. Continue reading