Why So Calm?
This week saw an escalation of tensions in the Middle East, with Iran getting directly involved.
The world hasn’t looked this dangerous for a while. And let’s not forget the ongoing conflict in Ukraine.
So why aren’t stocks declining ?
Actually, global equities gained 2% in September. October has also started well.
This pattern isn’t new though. In this previous article, I showed how stocks have always shrugged off conflicts, even during world wars.
Only one thing matters …
The only thing that ever matters for stocks is Company Profits.
Simply: Stocks follow profit expectations.
(My next podcast and video will walk through this step-by-step).
Historically, conflicts have only minimally impacted company profits. Even during major world wars.
Periods like this will see many sensationalist predictions but most of it is click-bait. Far better to follow the evidence instead.
Might stocks drop?
They might, of course. September was up (contrary to seasonal norms) but October may well decline if things really escalate.
Take a look at the chart in my previous article and you’ll realise such declines are always an opportunity.
In the meantime, however, our biggest hope is that peace finds a way to prevail.
Always Remember:
- Time in the Markets always beats timing the markets
- Stay Diversified
- Minimise those leakages: Fees, Inflation, and Taxes
- Financial Markets are a great source of recurring income
- ETFs, Balanced Funds and Options achieve all the above
- Being educated helps you outperform 99% of the population
… to ensure your investments work for YOUR financial freedom (not someone else’s)
And …
For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.
Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth. And Options to create recurring income.
Click here to learn about our Investment Academy
Finally …
– Don’t take the above as advice as it may not apply to you personally
– Your Capital is at Risk
– You may not be covered by the FSCS
– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now
