If You're Under 50, Your Money Needs to Hear This
Learn from the Past and Position Your Investments for the Future
The last three years have been economically volatile. We experienced the liquidity crisis induced by the pandemic in March 2020, a surge in financial assets that created a bubble, a legion of reckless consumers that helped mark the beginning of the highest inflation rate in over 40 years, and an orderly destruction of financial asset prices by the Federal Reserve to close out the three-year period.
Chaos. Uncertainty. Volatility.
Choose the words you want to describe what just happened, but it has been an incredible journey. The problem is that the whiplash in markets and economies will have a lasting impact on consumers and investors, especially the younger generations. You would have to be at least 50 years old to remember the last time the United States dealt with high inflation. This means that more than 200 million Americans are experiencing this phenomenon for the first time.
All of this sounded appealing when during the second half of 2020 and early 2021, money was being given away at levels not seen since the world wars (black line) where any stock tripled regardless of the sector, name, or whether it made stationary bicycles for the home.
It didn't matter what happened, you were going to make money. A lot of money. This led to trading platforms like Robinhood, where you can buy fractional shares, appearing.
But there are no two things that last less together than money and a fool. As quickly as it came, it went away. The clearest example was ARKK. A company that has benefited from the hype and has made its founder one of the richest people in the world with a net worth of $140M (even though it exceeded $400M).
After making a 4x, it has returned to levels lower than those it had during the COVID crash. Yes, you heard that right, it has returned to levels it had during the COVID lows.
The problem has not only affected these types of funds. All types of assets have been affected. In fact, it has been one of the worst years for all assets. There hasn't been any that have been saved, and that's not even considering that inflation was at a 50-year high.
This means that most investors who were eager to put more money into the market just a year ago have now exited with a -50% of their capital and don't want to hear about it again.
However, perhaps now is the most opportune time to be in the market. But you should only be in it if you position yourself in a somewhat strategic way, considering that we live in a tremendously sophisticated world and the risks of systemic damage are infinitely greater than ever before.
For this, it is important to buy cheap insurance to prevent your portfolio from being damaged, and this is something that very few people take into account.
Now we leave you with our portfolio in detail. Best regards.