Hopefully you are not one of those investors who are sitting on the sidelines, making the excuse that you’ll make those smart and necessary money moves after the next presidential election.
If you are, then this is really for you. If you are already taking action, then kudos to you. Though you probably know a few people who really need to read this. It may be a family member, partner or fellow investors.
The Same Old Illusion of Uncertainty
For years analysts and journalists have been saying the theme of the year is ‘uncertainty’. We should be pretty comfortable with that by now.
Yes, we’ve had a few extra special events this year, but it’s really not that different when it comes down to the fundamentals.
It’s the same old thing every election cycle. The media whips up a storm of fear and uncertainty. The experienced keep investing through it and win. The others pay the price and reward those who took action with their dollars.
There may be different names and faces on the ballot this year. This year’s health scare might be a different strain. Yet, in a few months it is quite likely it will be mostly business as normal.
Profiting From Fear
It may not be a nice way to make money, but that’s how it works. It’s the same no matter who’s in the White House, and which side of the media you subscribe to. Some of it is to motivate voters to turn out. Some of it is to just numb people into not voting.
Then you have big media platforms like Bloomberg and The Washington Post which really make no secret of trying to use their position to sway consumers and financial markets. It is all about profiting from fear.
Maybe it isn’t the right way to abuse their power to make money. Yet, it is happening. Markets and people are reacting. It is foolish for intelligent investors to just close their eyes and minds to the opportunities this creates out there.
The most money and wealth is made during these times. When others are fearful, and maybe even scaring themselves by their own tactics, you’ll find great discounts and yields to be had. Be grateful for the opportunities. Be objective, not emotional.
Why You Can’t Afford To Wait
After the election and the next president is installed there may be some minor tweaks to the features of our lives, economies, and money. Not much changes in true underlying fundamentals though.
So, inevitably, once the fear and hype over the election subsides, guess what happens? Everyone wants to get back into investing. Compounded by seasonal trends, demand shoots up, prices get overblown, value compresses, yields are reduced for new investors. The best opportunities and rewards are gone, and you don’t have a time machine to turn the clock back.
In fact, after this early fall period of lower acquisition prices for assets like real estate, the end of year can be a great time to liquidate some of them to investors with newly found optimism after the election. Or those finding new reasons to be fearful before the new year kicks in.
What to Invest In
Contrary to a lot of the hype, it’s not new innovations that drive the biggest companies, best family empires and most sustainable businesses and investment portfolios. Behind that glitter they are based on what’s not going to change. That’s true of Walmart, Amazon, JP Morgan Chase, and love it or hate it, the Trump brand.
So, what’s not going to change in the next 10 years?
The need for:
Humans will always need shelter, water and food. Even if we go extinct, computer servers need shelter, water and fuel. Since the beginning of our history, we’ve also relied on trade, some form of currency for commerce, financial leverage and borrowing (debt).
Find out more about investing in secured debt and real estate, go to NNG Capital Fund