Over the last few years, the way people think about investing has changed radically.
Before the pandemic, people talked about companies. I’d hear things like, “I always see customers in EZPawn. Their stock must be doing great.” Or “The new Call of Duty is coming out soon. Is Activision a buy?”
The conversations almost always started with a product. It was something tangible. And whoever was talking believed that product would drive sales and push the company’s stock price up.
There was also a sense that wealth took time to build. After all, no one started a business and became rich overnight. Success took time, and people were okay with that.
Once the pandemic hit, though, everything changed…
After the pandemic panic of 2020, people stopped talking about companies. They started talking about “gains” instead. And worst of all, they got incredibly impatient about those gains.
One person I know, who knows I trade options for a living, asked, “A friend of mine knows someone who made a lot of money in GameStop. Which option is best to buy?”
Others didn’t even want advice, they just wanted me to tell them they were right after they’d already done something.
Someone else told me, “Everyone makes money in crypto, so I bought some too.” My mom even bought Dogecoin. Then she texted me to see what I thought. (Since I know she’s reading: Mom, it was a bad idea then and still is.)
Mom was also interested in GameStop. So was everyone that I knew under the age of 30. Not because it’s a good company… Because the stock went up nearly 20-fold in three weeks.
Nobody who asked me about GameStop or Dogecoin ever mentioned companies, or products, or value of any kind. They only ever asked me about price targets and options strategies.
In short, the markets of 2020 and especially 2021 broke people’s brains. They were misled into thinking the rules of investing had changed forever, and that the best strategy was to simply chase what was hot.
During that time, I heard more from my friends and family about investing than I ever did before the pandemic. I don’t hear much these days. I think it’s because those who bought things like GameStop and Dogecoin suffered losses and gave up trading… But I’m too polite to ask.
I do hear from some older people I know. They own annuities and dividend stocks they bought 30 years ago. They’re worried, but only about the future for their kids. They feel okay about their own strategies. They took a get-rich-slow approach, and it worked.
I prefer a more active approach. I like trading frequently, taking gains quickly and cutting losses before they become too painful.
My approach doesn’t work for everyone. But the point is, I’ve stuck to this approach despite the rapid change in investor sentiment over the last few years. That’s why I’m still around, still trading, and still making money despite the worst market environment since the Great Financial Crisis.
This is one of the few qualities you consistently find in traders that have long careers. And a colleague of mine exhibits this quality better than almost anyone I know.
He’s the same investor today that he was last year, two years ago, five years ago, and 30 years ago. And that’s an investor that knows a good business like the back of his hand, whether we’re in a speculative frenzy or a brutal bear market.
Charles’ New Inevitable Portfolio
My colleague Charles Mizrahi takes a get-rich-slow approach. His specialty is uncovering smaller stocks that are likely to perform well over the long haul.
During the last major bear market in 2009, Charles created a portfolio of these “inevitable stocks.” It was his belief that this portfolio had a 100% chance of delivering profits even if the bear market got worse.
Among the stocks were Autodesk, Texas Instruments and Microsoft … which are now up 1,100%, 1,400%, and 2,000%.
All told, $1 million invested in Charles’ first “Inevitable Portfolio” would now be a $5.3 million fortune. A 5X return.
Charles sees the market of today as just as big of an opportunity as the one in 2009. That’s why he’s about to release a brand-new Inevitable Portfolio. And this time, he thinks the gains could be double what they were last time.
That’s right. A 10X payday from just three stocks in 10 years.
Charles is putting $1 million of his own hard-earned capital behind these three names. But he’s giving everyone bold enough to join him a 48-hour head start.
I’ll be watching.
Senior Analyst, True Options Masters