Televisions have evolved from a 50 pound black and white block sitting on the floor to a light weight color-filled panel hanging on our wall. Telephones moved from the nightstand to your pocket, email replaced snail mail, talking is now texting, and the internet allows you to connect, shop, date, work, and invest without leaving your house. Technology created a platform for visionaries like Bill Gates, Jeff Bezos, Steve Jobs, Elon Musk, and others to completely change our daily lives.
THE STOCK MARKET HAS CHANGED OVER TIME AS WELL. Personal computing and the internet opened the door for individuals to have direct access to markets through online trading. Retirement programs like the 401k introduced millions of new individuals to the markets pushing the great bull run of the 1990’s. Now computer based trading from “High Frequency Trading” firms comprise 70% of the daily market volume , bonds have become risky as interest rates bottom out, and we live in daily fear of the next major terrorist attack.
THE FACTORS THAT IMPACT THE STOCK MARKET IN THE NEW ECONOMY WERE NOT EVEN RELEVANT WHEN
TRADITIONAL INVESTMENT METHODS WERE FIRST INTRODUCED
Traditional investing methods
were introduced over 60 year ago
The factors that now affect the
markets have changes
These new factors require a
Technology has created changes in most every area of our lives. Remember the first text you ever sent, the first time you used a cell phone, or the first order you ever made on Amazon? We make changes to keep up with the times and often do so without even realizing it. At other times change only comes about by us having to make a conscious decision to do so. Even with all the advancements over the last 20 years surprisingly the one area that has changed the least and has a major impact on your personal future … is the way you invest. The financial industry has done little to improve investing methods over the last 60 years, preferring to let investors continue doing what they have always done, rather than inform you of updated methods designed to adapt and change as the market does in the New Economy.
Traditional investing methods like Asset Allocation, Buy-and-Hold, and Diversification were founded over 60 years ago. Before computers, the internet, index funds, terrorism, online trading, cell phones, retirement plans, and other factors affecting our daily markets even existed. Traditional concepts were based on historical long term data and assumed what had happened in the past would continue into the future. However, buy-and-hold investors saw firsthand the painful reality of relying on these methods when the stock market crashed 50% in 2001/2002 and then again in 2008. Today’s markets require an investment approach designed to adapt and move as markets change while increasing areas of strength and decreasing areas of weakness to protect during the storm and grow during times of prosper.
Fill out the Form Below to Receive Information