There is one common thread within Wall Street, no matter what happens there is always opportunity for Wall Street to make money. They will feed the fear by offering products which provide safety and guarantees.
This safety and the guarantees come at a very high price to the investor.
In the long run the costs to the investor are high as well as the revenues to Wall Street. Higher costs to the investor directly affect performance in a negative way.
All that you know is what the brokerage community or financial press wants you to know. They have trained you to accept their version of reality – over the span of your entire life.
There is a complete body of investing knowledge developed in the halls of academia. Most people do not even know that it exists. This is the real wisdom you need to create wealth and abundance.
Remember market risk is not your greatest risk it is inflation risk. As an example if inflation averages just 5% your cost of living doubles every 14 years.
If you are 65 today with a $2000 per month income, with no increases, your spendable income in 14 years will be $1000. In other words your $2000 monthly income will buy one half of the goods/services it buys today.
Volatility is uncomfortable, at least the negative volatility but it is something you will have to live with to keep up with inflation and grow your wealth.
An opposing strategy of the Wall Street bullies is to convince investors they can predict the future. These bullies convince investors they can pick the ‘right’ stocks or strategy to ‘beat’ the market.
This ability allows the investor to save less and earn more on their investment dollars. Unfortunately, over the long run, this has proven to be unsuccessful for most investors.
However, it is a good selling point for aggressive financial salespeople.
These are two examples of how the bullies can find a product to sooth fear and feed greed.
Avoid falling into either Wall Street trap. Fire your broker/agent and hire an investor coach/fiduciary adviser.
To succeed with investing for the long term you must own equities…..globally diversify……rebalance.
