Jesse Livermore once said, “There’s nothing new on Wall Street.” Find out why here! [Fridays: Mindfulness by Miles]
Miles Everson’s Business Builder Daily speaks to the heart of what great marketers, business leaders, and other professionals need to succeed in advertising, communications, managing their investments, career strategy, and more.
A Note from Miles Everson:
I always mention in “The Independent Investor” articles’ notes that I firmly believe investing is an important activity that we must learn regardless of the career path we are in.
For me, this is one of the vehicles that will help us grow our monetary wealth and build our financial future.
Early this year, we conducted an Executive Roundtable with Professor Joel Litman, Chairman and CEO of Valens Research, regarding the 2022 Stock Market and Economic Assessment.
I personally had a lot of key takeaways from his presentation! Would you also like to know more about the highlights of this roundtable?
Continue reading the article below.
Mindfulness by Miles
Jesse Livermore, a well-known, respected stock trader and pioneer of day trading, once said:
“There is nothing new on Wall Street.”
According to him, whatever has happened before in the financial market will likely happen again. Let’s take a look at the examples of headlines below…
“New York Bond Offering Fails”
“Financial Contagion Spreads”
“Interest Rates Soar”
“Major Brokerage Nearly Collapses”
“Banks and Businesses in Bankruptcy”
These are some of the front pages of newspapers during the Market Panic of 1974―a stock market crash that caused a bear market between January 1973 and December 1974.
During the roundtable discussion on January 13, 2022 titled, “Executive Roundtable: 2022 Stock Market and Economic Assessment,” Professor Joel Litman, President and CEO of Valens Research, said these headlines are NOT entirely new.
During the Market Panic of 1907, a financial crisis where the New York Stock Exchange fell almost 50% from its peak in 1906, the same headlines above appeared in newspapers.
These show that the stock market consists of patterns that recur over time… and as long as you understand these changes, you don’t have to worry too much.
Miles Everson, CEO of MBO Partners, was one of the hosts of the roundtable discussion. He said one of his favorite points in Professor Litman’s presentation was the fundamental investing principle of buying low and selling high.
Everson agrees with the idea that if the markets are down, that’s when investors should buy stock. It’s not that difficult a concept.
He said what makes investing difficult is the financial media―Professor Litman also frequently mentions this in his webinars and other programs. When the market is up, the media publishes headlines saying that the stock market has yet again reached an all-time high.
Here’s the thing:
The stock market will reach all-time highs from time to time. It’s been that way for the past 200 years of recently recorded financial history and probably, for thousands of years of civilization before.
That’s why for Everson, such financial news should not easily surprise intelligent investors.
Here’s another one of his favorites from the roundtable discussion: The COVID-19 pandemic won’t change the overall statement that equities outperform everything as long as there’s enough time.
He said that segment gave him confidence to keep buying stocks and avoid panicking in the midst of a health crisis because as Livermore said, “There is nothing new on Wall Street.”
As long as there’s no corporate credit crisis, companies in the stock market can adjust for whatever issues there may be in the pandemic.
Everson said investors should take note of Professor Litman’s advice to ignore most of Wall Street research and the financial media when making investment decisions.
These sectors like to sensationalize events as much as possible!
For Everson, the best advice is for investors to do their financial activities SLOWLY and STEADILY. This proves to be more effective in the long run.
So, if you’re investing not just in the short term but also in the long term, keep in mind that the daily ups and downs of the stock market are immaterial. This means the daily fluctuations shouldn’t affect much of your investing strategy.
We hope you’ve learned a lot from both Professor Litman and Everson’s insights from the roundtable discussion!
Remember: There is nothing new on Wall Street. As long as you have a clear grasp of the credit markets and the recurring patterns in the stock market, you should be able to keep buying and avoid panicking in times like this.
(This article is from The Business Builder Daily, a newsletter by The I Institute in collaboration with MBO Partners.)
About The Dynamic Marketing Communiqué’s
“Fridays: Mindfulness by Miles”
High-performance businesses are run by people who think and act differently.
In other words, these are people who are high-performing individuals.
Companies and individuals of this kind have found ways to escape the grind of commoditization and competition by focusing on the RIGHT goals.
High-performing businesses and individuals are also “return driven” businesses and “career driven” individuals. They conscientiously develop unique capabilities and resources that allow them to deliver offerings in ways no other firm or individual can.
Every Friday, we’ll publish tips and insights from MBO Partners and The I Institute’s “The Business Builder Daily” newsletter.
These will help you gain knowledge on the things that Miles Everson, the CEO of MBO Partners, often talks about regarding the future of the workforce.
We’ll also highlight other mindfulness advice on how you can be a high-performing individual both in your career and personal life.
Hope you’ve found this week’s insight interesting and helpful.
Stay tuned for next Friday’s “Mindfulness by Miles!”
Head of Marketing
Valens Dynamic Marketing Capabilities
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