I want to show you the very real correlation between politics, business, and your ability to make money.
We all know about coronavirus. Donald Trump spoke for a couple of hours today in front of a team of doctors, businessmen, and other politicians about its implications and our strategy as a country. He invited multiple CEO’s and COO’s up to the mic to say a few words.
Executives from Target, CVS, Walmart, Walgreens, and a handful of others all shook the Trumps hand as they took the stage for a moment. All of these companies are agreeing to partner with the CDC and the Federal Government to expedite the coronavirus testing process.
The companies will be opening up their parking lots to be used as mobile drive through testing centers.
Everyone who spoke seemed delighted and happy to be working together, despite technically being competitors. Personally I think it is great that they are doing this and I think if it can really help speed up the testing process and provide a greater amount of tests for our population, we should do it.
However, I want to highlight one company that spoke today. LHC Group.
I didn’t quite catch what they do or who they are, but for some reason I was inclined to look up their stock value online.
I was amazed. As an investor, I was a little late.
What this image is showing is the stock value for LHC Group throughout the course of the day. For whatever reason early on it was sliding, but can anyone guess what happened around 3:30 PM?
An executive from LHC Group was speaking at the Presidents podium. For 5 minutes at most, he was answering questions and giving statements thanking the United States Government for the opportunity to work together.
The image above is proof.
People will often make statements that politics don’t matter and that it is all just an act and another reality TV show. The image of LHC Group stock price is all you need to see to understand how real it is. That right there is an opportunity to make money! Just by paying attention.
If I bought LHC Group stock before the address started at $113, and watched it soar all the way up to $129, I would be an extremely happy man. Imagine being bought in with 100 shares. Your profits go through the roof.
I’m going to be very hesitant to give any definitive advice, because the market is so volatile right now and I’m not even doing much myself. So all I will advise you to do, is pay attention. Keep up. Watch the market and pay attention to the politicians and the corporations. It is a game you can play with your money that can pay off in huge ways.
As a young adult between the ages of 20-30, I really hope that you can take this advice to heart. I really believe that the times we are going through right now, in March 2020, that there will be some opportunities for our generation/age group to win coming up in the near future. Before we win though, we have to know how to win.
Covid-19 or whichever of its ten names you want to call it, is deeply impacting the likes of the world right now. The President of the United States sat down in front of the country last night to talk about it, banned all travel from Europe to the US, the NBA suspended the rest of its season, March Madness is about to be played with no fans in the arenas (tournaments will get cancelled all around in the next day or so).
It is safe to say that the impact of the Coronavirus is very real and starting to hit very hard.
Another area that’s being hit is the stock market. It continues to dip as investors begin to dump what they have and take the cash before prices fall too low.
Some semi good news can be understood using this analogy –
The stock market is like a dog on a leash, and the economy is like the person walking the dog. You’ll see the dog darting back and forth left to right, sniffing everything he can find, while the human is just walking at a controlled pace, in the same general direction, rarely deviating from the path.
Right now is no different than a moment that the dog takes off after a squirrel, and the person walking it has to just grab the leash and pull back in a little bit. The big picture – the human – is still under control. The economy is still under control. Cash is still here, jobs are still here, labor is still here.
But, while the dog is running wild in front of the person, there is money to be made or lost. You can place money in the stock market and hope that it increases in value. Find a company that you believe in, that you use, and that you think has a solid future ahead of them. (There are tons and tons of lists and ways to find the best stocks to buy at any given time. The Motley Fool is a great place, Yahoo! Finance another.)
I am telling you this because in my opinion, we have around a year left of a somewhat crash. I think we will see a small correction after the election – no matter who wins – and then it will slowly dip back down after that. We have probably a year until the market hits the lowest point that it will hit, and at that time, people in our situation, need to be ready to buy.
You have a year to learn as much as you possibly can when it comes to finance, economics, and investing, because there will be a pot of gold opportunity waiting for us there when the market bottoms out.
But why is the market being so low a good thing?
I’m glad you asked. When the market is low, prices are low. We all love a good sale, right? New pair of shoes went from $129 to $89, you’re much more likely to buy them, and you know you are getting something for a great deal.
Stocks are no different! If you know that Company A is a great company and usually worth $40 or $50 a share, but right now is down in the $20’s, you need to see those stocks as if they are on sale.
If every other rational investor sees low priced stocks this way, what will end up happening?
They will all be buying these stocks that are on sale! If everybody is buying, that means the companies and the stocks will become more valuable.
You (and everyone else) bought in while the market was down, and purchased 100 shares at $20 a piece, now they are up to $40. You originally paid $2,000 for something that is worth $4,000. Now, you have the ability to sell those shares and cash out for the $2,000 profit or you can leave it invested or find other places to continue growing.
The options are endless, but they are options that need to be taken advantage of.
Too many people complain about how much they didn’t learn about finance and investing in high school, but don’t ever try to gain more knowledge on it. You have to find this stuff on your own and you have to make this stuff happen on your own. Your high school didn’t owe it to you to teach you this stuff, but I truly believe you owe it to yourself to teach yourself.
I definitely won’t claim to know everything, but I will always be doing my best to learn more. I just want to present the ideas to you and allow you to work on your own to learn more about whatever it is you want to learn about. It’s all out there, go find it and dive in.
Before you read this any further, I have excellent financial advice that you are going to want to hear. If you are under 30 years old, this is *specifically for you.
First things first – who am I and why do I think I have the merit to speak on this. I am a 25 year old HS Business Teacher with a Business and Personal Finance Certification, I am 4 classes away from an MBA, I minored in General Business, I own a company and have owned two others before this one.
To be quite honest with you, I don’t have a ton of cash to my name – if I did I would’ve spent it on a down payment for a rental home months ago. I have a baby girl on the way, and really only one thing has been on my mind lately.
How can I get her as much money as possible in the next 18 years?
Great question! I don’t know the answer to it.
I do know, however, how to find out ways to learn the answer.
Do. Your. Research.
Stop scrolling through IG for a minute and open up investopedia.com. Haven’t heard of it before? Here is your intro – click on the link.
Log out of Netflix and listen to Dave Ramsey instead.
I can’t sit here and tell you the best options to purchase or how to identify the best home deeds to purchase in rundown neighborhoods.
What I can tell you though, is that you need to start learning this stuff. You need to start taking your finances and your financial position seriously.
As I mentioned, this article is mostly for those around my age – under 30. Our generation needs to do a much better job of going out on our own and learning, doing, and winning. Take strides right now that move you closer to where you want to be, and further away from everybody else.
If you don’t keep up with the market and the national economy you really should, because there is money to be made out there and if you don’t take advantage, you will be extremely upset with yourself in 10-20 years.
Recently the market has taken a slight hit, and has dropped a little bit. When this happens investors get nervous and do one of two things – they sell everything they have to limit their losses, or they buy more to try and take advantage of the low prices.
When prices drop and everyone buys, what happens to the value of the company? It goes up, because more people bought in to it. Now where is the price? High again, right?
You can see this is how the natural flow of the market occurs. When something happens that scares everyone or excites everyone, things tend to overreact – for better, or worse. Prices can go up and everything can be extremely valuable, or prices can drop and the entire NYSE can seem like a dumpster fire from a distance.
The Dow Jones tracks 30 large American companies, and responds based off of their respective performances. In the last few weeks it has dropped, and continued to drop.
Some of the words and the symbols might seem foreign to you, but it shouldn’t take to much financial literacy to see the decrease on the chart above. The image you see is the value of the Dow Jones year to date (1/1/2020-3/11/2020).
This second image might look identical to you, but it isn’t. It is a completely different index called the S&P 500, which instead of compiling 30 companies like the Dow Jones, the S&P 500 compiles – you guessed it – 500 companies. What this creates is a small snippet of the bigger picture, which is the entire market and NYSE.
When these two indexes are falling, it is often implied that the market is falling as well. For people like you and I, this can be a phenomenal opportunity, here’s how:
Get your mind right, right now. Learn as much as you possibly can. I wouldn’t advise doing too much right now because the market may continue to slide due to COVID and Trump and Bernie and Russia and a million other things.. but my advise is learn.
Take a minute to read up on investopedia.com every once in a while. Download Robinhood and Acorns. Mess around a little bit and become familiar because as a young adult, this is the time when you will make the moves that will impact the rest of your life.
If I make the right investment right now, or if I put my money in the right place right now, I can have college paid for for all my children. If I play it right, I could buy a house that will provide me monthly income for the next 20 years.
So can you. None of this can be done without learning what to do first. Internalize as much as you can, and be ready to act soon.
Many people feel that the market is not done dropping, and for people like you and I, that is wonderful news.
Get out there and learn something, and let’s make some serious money.
We all (should) have some pretty big goals in front of us at all times.
I write about goals and vision and things of that nature quite a bit, but today I want to touch on the fear of failure and how it can be an extremely effective motivator.
I have a fairly daunting task in front of me this summer, with a reward waiting at the end to match the journey.
Things are getting pretty down to the wire in terms of time left to accomplish this task, but I’m not freaking out about it (hardly ever do, does no good).
One thing that was brought up to me today in regards to this task, was how I would explain to everyone around me if I were to fail.
‘I’m just not smart enough.’
‘I didn’t study as much as I should have.’
‘I was afraid to ask for more help even though I knew I needed it.’
These aren’t necessarily excuses, but every time you fail, people are going to want to know why. YOU are going to want to know why.
99% of the time, you will know exactly why.
You’ll know that you took too many breaks, too many days off, not enough late nights, whatever it may be.
You will know, but everyone else will also want to know.
So I come to you today with this, DON’T FAIL. Set your time frame to accomplish your goal, and do every single thing you can to make it happen.
As these last few weeks close in on my time frame, I know for a fact I am going to be giving every last ounce of energy I have to accomplish this goal.
When you have something in front of you, and other people know about it, think about how you’re going to explain yourself to those expecting highly of you if you are unable to achieve what you set out to.
I promise the story of why you failed won’t come down to the task being too difficult, it’ll come down to your preparation and your execution.
Give so much to it, that failing isn’t even an option.
We all have experienced the back and forth relationship between pushing and pulling in our lives at some point.
When we want a girl, she doesn’t want us back. Then when we don’t want her anymore, she seems to want us.
When you are going out of your way to find a certain pair of shoes in your house you might have no idea where they are, but the next day when you have totally forgot about your search, they pop up right in front of you.
In the process of our takeover there has been a lot of new stuff put on my plate that I have had no prior experience with. In these situations I tend to do pretty well and that is partly why I was excited to take the leap and begin this venture.
The more time goes by, the more tasks I have to complete, the deeper I get in to the world of e-commerce, the less I find out I know.
It has been taking a pretty good toll on me and I have been getting a little bit more upset than I probably should. After hours and hours of clicking yourself in circles and accomplishing nothing, sometimes I need to step away.
I take the stress off of myself by disconnecting from my desire to obtain a true understanding. When I completely clear myself of the stress, somehow, I suddenly know exactly what I need to do.
If I call it a night and go to bed, I often times wake up in the morning and get back on the computer to work again and magically click all of the right buttons and end up in the ever elusive locations I needed and stressed about just the night before.
I’m realizing that when I am stressed and upset about something, my energy I put out isn’t the energy I need to bring good in to my life. My vibration is too worried about what I can’t find, what I don’t know, that what I need to find is struggling to appear in front of me.
It can be easy to sit and sulk in our negativity, but stepping back and removing ourselves from the situation and from the negativity can give us the refreshing energy we need to obtain what we originally needed.
What I want you to take away from this is to not fight stress. It is okay to step back, press pause for a second, clear your head and your energy, and get after it again.
You will find that the silence and ease of your break will open up your vibrations to what you’ve been looking for the whole time.