Investing After COVID

By Jerremy Newsome

When the term “COVID” comes up in conversation, it elicits a plethora of emotions. But when we add the word “investing” into those same conversations, it tends to elicit one of two primary feelings; fear, or optimism. Likewise, those same two primary feelings seem to be omnipresent when it comes to the media discussing either topics, but especially when discussed together. 

While this article is skewed more towards the rare (albeit historically accurate and optimistic) side of investing as we discuss growing your portfolio in today’s post-pandemic world. After all, what is investing is about, if not an optimistic outlook for expanding financial wealth? 

Your money becoming a powerful force that begins to earn more than you in your current job or role, out pacing your debts and giving you a life of unapologetic freedom! This is the dream! Living and giving, sailing and flying, napping and reading, spending time with your family and scaring your gift to provide abundance for the world!          

You have seen these headlines. “The crash is coming,” or, “It’s inevitable, we are in a huge bubble,” and even, “The Dow Jones is going to drop 90% in the next 2 years.”

The takeaway here is, if your managed accounts, portfolios, and/or investments have not increased by at least 100% throughout the past year, this is a sign that you may be doing something (or a series of things) drastically wrong. 

Newton’s first law states that if a body is at rest or moving at a constant speed in a straight line, it will remain at rest, or keep moving in a straight line at constant speed, unless acted upon by a new force that disturbs its motion. The “force” that would be required at this stage, in this context, would be a massive amount of selling. The challenge with that selling is that it allows all the market participants to buy, whether they’re in or not.

Assets across the world have been increasing dramatically. Not because of inflated numbers, but due to lack of market supply, increasing demand, and richer individuals. Houses, watches, stocks, cryptocurrencies—even vehicles are increasing in value due to the squeeze in supply. Factories were shut down across the world. Workers have been unable to create and build. 

This has caused a supply issue. Therefore, my professional prognosis of the US stock market is, despite its current inflation, we will have some small corrections in the near future, many of which will get bought up with all of the cash and ultra-scared participants on the market’s sidelines. 

Will will also see another great depression in the next 9-14 years. We have to—it’s the economic cycle. The last catastrophic market crash of catastrophic proportions was in 1929. We are yet 100 years from that. 

At that time, the world had just survived a huge pandemic of Spanish Flu. Then came the “Roaring ’20s.” I believe that’s where we are currently. Enjoy market growth while it lasts; invest, be wise, and get educated.

Jerremy Alexander Newsome is considered one of the leading global minds on Stock Market education. He serves as the CEO of Real Life Trading.