The scars of the 2009 recession run deep. So deep that most people are afraid to invest because they believe another crash is around the corner. This post will help you understand why a crash is not coming, why there is much more actual growth to be had and why sitting on the sidelines and waiting could actually be the worst financial move you can make.
There will not be a crash in the near future
Most people see the term “record high” and think that if the market is high the only place it can go is down. This is not true. I presume that people think that when the market is low and can only go up that the logical inverse is high has to go low. This is not true. If the market is high it can go higher, or it can go lower. The amazing thing about the stock market is that the overall market trends higher. See the figure:
The theory is that even if the market does fall, it will ultimately rise again and typically it will rise higher (see figure). This is why investment advisers tell you that it is time IN the market that wins not TIMING the market. This is important because even if there were to be a crash if you ride it out, or even better, double down, you will win.
America hasn’t seen true growth since the Bush era. Markets don’t crash off highs, markets crash because the numbers reflected don’t match the reality of the economy. Currently we are building a thriving economy and the market will have to reflect that. As American industry grows so will the stock market, so will our stocks and so will our gains.
America is BOOMING
Despite the controversy, America is going to win. There are going to be some angry and upset people but the results don’t care if you are angry or upset. Winners win regardless if you like them. We are seeing some great things happening in America and although people tend to think other countries have influence in America, the truth is that America is the ultimate influencer.
The benefits of working with us far outweigh the small benefit of creating an enemy in the greatest country on earth. Therefore we will win by renegotiating trade deals that put our country, not fairness, first. We will win by bringing manufacturing back, by become a producer not a consumer and building up our reserves. America has been operating at a trade deficit for years, meaning we consume more than we produce, and we all know that producers get rich and consumers get poor. This is changing and the market will reflect these great benefits.
The recent gains in the stock market weren’t gains. Those were people making back the money they lost. What we are going to now see is actual growth, innovation and expansion which will propel the market to continued highs taking our portfolios along with it. In 2009 the market reacted emotionally taking all stocks down. This is significant because it speaks more the the emotions of the market not the fundamentals. Great companies got hit by association. Today we are seeing jobs come back, all our industries will be booming and thriving and the economy will be running like it has never run before. All of these things will impact the stock market as it tracks and reflects this growth!
The time for action is NOW. Don’t wait and watch other people making money and then hop in at the top. I urge you to get in now, ignore the risk and become an educated action taker. The worst that could happen is you lose money you would have spent on a depreciating asset OR the market dips and then reloads to recapture all the losses. The best thing that could happen is change into an investor, change your family tree and become a winner financially.
This post is to help you see that the companies that lost market value are now back where they were so if you took action you would at the worst be back where you started. If you start now you can win or you can take a temporary loss that turns into a win. If you wait and do nothing, you can only lose as the opportunities pass you by!
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