The market is fickle.
It doesn’t know you, doesn’t like you, doesn’t dislike you, and doesn’t care about you.
The market won’t make you rich, but it won’t make you poor, either.
Philosophically, it just “is.”
The representation of buying and selling transactions, the “market” is little more than a hologram. It allows us to see real-time movements of trading activity, transformed by ones and zeros.
Yes, those transactions are real, but they’re not tangible. You can’t touch the ones and zeros that represent your buys and sells. You can’t physically “kick the tires.” And when the market reacts to any crisis situation, it doesn’t explain to you why the value of your investment is worth less as a result.
Protect Your Portfolio
Last week, after the Brexit decision, world markets collapsed.
The DOW actually closed down more than 600 points last Friday. We haven’t seen that kind of destruction in a very long time. And of course, the most frustrating thing is that there were plenty of public companies that got sideswiped, yet their businesses won’t be affected by the Brexit at all.
This holds particularly true for the legal cannabis space, where Canadian and U.S. cannabis stocks are pretty insulated from influences outside of North America.
Of course, there is a way to invest in any number of companies (not just legal cannabis companies) without having the value of those investments instantly diminish as a result of public market disruption.
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Protect Yourself
When the market tanked on Friday, there were thousands of investors who took the whole thing in stride.
It’s true that some of their stocks got hammered, but their investments in private deals were unharmed.
You see, these private deals are essentially investments that cannot be bought and sold on the public markets. They’re not directly exposed to the whims of trading algorithms and emotional investors that make decisions based on fear as opposed to logic.
These are investments that, for the most part, simply weren’t affected by what happened in the UK last week. These are domestic solar developers, cannabis testing companies, and Canadian organic farms. They’re U.S.-based shrimp producers, app developers for the deaf community, and organic yogurt smoothie companies that cater to the professional sports community.
Indeed, it’s true that these are all small, niche segments — but the profits are anything but small. And more importantly, when the fallout from the Brexit decision hit, the investments in those niche companies didn’t lose any value. Trading algorithms couldn’t signal any flash sell alerts on them, and day trader collectives couldn’t manipulate their share prices.
Of course, these are also investments that are held by a small group of people that have access to private deals not available to most investors. If you want to know why this is the case, I explain the whole thing here.
Although it doesn’t really matter why this is the case, because as a member of Wealth Daily, you can get in on these private deals, too… private deals that can help protect your portfolio from public markets that seem to become more and more unstable by the day.
The truth is, this recent Brexit decision will not be the last catalyst for major global market disruption. And that’s why it’s imperative that you protect your portfolio by getting some exposure to the types of investments that just can’t be pummeled by the next big market crisis. And mark my words, there are plenty more to come.
To a new way of life and a new generation of wealth…
Jeff Siegel
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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
