If you’re read even a little bit about market theory, you’ve seen admonitions to “keep calm and carry on”, especially referring to long-term investments in index mutual funds. Investment thinkers of many varieties point out that hasty, emotional action based on perceived threats (or perceived benefits) is more likely to result in lower long-term earnings than the dividends earned from an undisturbed account. Nonetheless, credible thinkers still have questions about whether or not this endless upward market trend can continue indefinitely (or, more specifically, during and for the duration of our lifetimes).
One of the most common critiques is that the yearly average market growth is based upon revolutions which aren’t coming back. Before we pick it apart, let’s hear the argument. A quick look at any long range growth chart of the S&P, for example, will show that growth was intense, especially through the 1990’s. Remember the 90’s? This was when the internet was being introduced, when consumer technology changed forever, and when international relations were changing on a fundamental level unseen in the history of the world. Many people think we can never see that kind of economic growth again. But is this true?
The thing about revolutions is you can’t see them coming. That’s why theyare revolutions: unexpected upheaval of the social/political/economic strata. It would have been difficult to even explain the modern internet to someone living in the 1970’s, it being so completely different than anything that had ever before existed. And the countless technologies and advances in many different arenas of life were also unimaginable.
This year has been a record-breaking year for initial public offerings with companies going public via SPAC mergers, direct listings and standard IPOS. At Techlive this week, Jack Cassel of Nasdaq and A.J. Murphy of Standard Industries joined Willem Marx of The Wall Street Journal and Barron's Group to talk about companies and trends in Read More
Why do we think that just because we can’t perceive what the future will be like that it won’t include other earthshaking advancements?
Call it recession malaise. Perhaps we as a people have endured too much economic disappointment to assume that the American economy can ever be stoked again into full flame. But this thinking is simply taking a purely negative view of that which we can’t predict. All the same, the reality of questions like this is motivating many new investors to step outside of traditional investment behaviors.
New investors are taking more and more to instruments like binary options and real estate, even as primary investments. Both methods, though completely different, allow investors to take a more hands-on approach to their wealth growth. Binary options allow people to work from home, through their insight and predictive skills, and see dividends in hours – not years. In an international society with a very uncertain future, binary trading is fast paced and rewarding to those who learn it as a skill, and a possible path to real wealth or income.
Similarly, real estate offers physical assets that can make investors feel more secure than the immaterial markets. Though real estate follows completely different patterns than binary options, you see the same sorts of people getting interested in both. These are investors who want to make good money outside the traditional workplace, in order to put together a lifestyle of their choosing.