I've talked with tens of thousands of investors over the years, and almost to a person they're convinced that building wealth is a complicated, difficult undertaking.
Not the way I see it.
In reality the biggest challenge isn't investing itself.
And, specifically, the lies we tell ourselves about money.
Learn to get around those and making money becomes easy. Racking up huge profits becomes fun. Retirement becomes - dare I say it - something you enjoy.
Here are three (actually true) market truisms to get you started.
1. The Markets Have an Upward Bias
I often joke with my audiences at presentations around the world, saying that we are all born with common sense... it's just bred out of us as adults. Usually that gets a good laugh because everyone in the room can identify with the premise.
Nowhere is that clearer than when it comes to money.
It's human nature to believe that the worst is just around the corner. Faced with a minor correction, millions of investors believe the sky will fall and the markets will go into some sort of catastrophic meltdown. Headlines light up with bearish commentary and the pucker factor rises exponentially.
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Maybe that's a result of millions of years of genetic programming or simply a byproduct of the Internet - I don't know. But what I do know is that that millions of investors want to believe the world is going to hell in a handbasket
Yet, in reality, the world has a very positive bias, and so does your money.
Take current market conditions, for instance.
People are convinced the financial markets are going to implode for any number of reasons. There's Kim Jong Un, Vladimir Putin, China, the Fed, the president, the debt, rising interest rates, and the fact that the bull market is now nearly nine years old.
This is a lot like worrying about having three feet of snow on the ground in July just because you got an inch of the white stuff in November, and about as fruitless.
Let me prove it to you.
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Global stock market capitalization stands at $77 trillion give or take today. In 1975, that figure was only $299 billion, which means that the world's financial markets have grown by 25,652% through multiple conflicts, terrorism, and all sorts of nastiness.
"Why?" is deceptively simple.
Contrary to what a lot of investors believe, money wants to grow.
It's your job to let it.
2. Line Up with the "Unstoppable Trends"
The best way to do it is to line up with the world's capital markets rather than trying to fight 'em or second-guess where the money's moving, which is how most investors do things.
I say that because most investors are great at finding trends, just not the right trends.
Not surprisingly, this puts them at odds with Wall Street's quick buck artists who would like nothing more than to separate them from their money.
Take FitBit Inc. (NYSE: FIT), for example.
Millions of investors were enamored with the wearable technology company because it was cool. My take was to avoid it like the plague because it wasn't tapped into any of the six Unstoppable Trends we follow.
FitBit trades at $6.60 today, having lost a staggering 79% of its stock price since going public and 86% from its peak value in July 2015.
Or take Sears Holding Corp. (Nasdaq: SHLD).
Plenty of investors fell for the talk that the company would create a buyer's club, that it would turn around based on its real estate holdings, or that CEO "Fast" Eddie Lampert would pull a rabbit out of his hat.
I named it "the most dangerous stock" on Wall Street nearly 10 years ago and have again over the years. My thinking was simple. I saw Amazon.com Inc.'s (Nasdaq: AMZN) growing power as a primary contributor to what's now commonly called the "Retail Ice Age." Like FitBit, Sears wasn't tapped into a single Unstoppable Trend but was, in fact, running against several, including both scarcity/allocation and technology.
Lining your money up with Unstoppable Trends ensures that you have the implicit backing of the world's financial markets, the world's best CEOs, and a slew of "must-have" products and services the world cannot live without.
That puts you in the enviable position of harnessing growth rather than having to fight over table scraps left behind by the big money like most investors do.
3. You Don't Need a Lot of Money to Make a Lot of Money
Contrary to what many investors believe about needing to have a lot of money to make money, it is absolutely possible to make a pile of money in the financial markets even if you don't have a lot of money when you're starting out.
Pick the right company and you can laugh all the way to the bank.
Every $500 invested in Microsoft Corp. (Nasdaq: MSFT) when it went public in 1986 is worth a staggering $334,249 today.
Anyone who invested in Alphabet Inc. (Nasdaq: GOOGL) - formerly Google - when it debuted in August 2004 at just fifty bucks a share is sitting on gains of 1,775% today.
And every $500 invested in Raytheon Co. (NYSE: RTN) on May 15 of this year could have been turned into double that just one day later.
Or how about 100% PROFIT in one day on Gap...
108.3% PROFIT in three days on Valeant Pharmaceuticals...
70.4% PROFIT in two days on Fossil...
102% PROFIT in four days on Facebook...
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Simply put, it's one of the easiest ways to build wealth that I've ever seen, and you can do it right from your phone.
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About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.