Once again, the Sunday Investor is written from an individual active investor perspective. If you hold stock in any way you’re bound to see somewhat of a surge with the upcoming lift of restrictions.
The most obvious effect will be seen in consumer stocks of various kinds, including and especially travel related companies, as I mentioned in a previous post.
So if you’re investing either as a newcomer or to pad what you already have, pick a company that you like that has share prices within reach for you. The way I see it you’ll get some automatic and significant growth from the lifting of pandemic restrictions, and then from the official end of the state of emergency.
Basically, anytime you see a large change in society, that affects the markets.
There was a time in life when I was very skeptical about getting involved in investments, but it’s true with this as well — knowledge is power, and so is paying attention! You can have fun with it. That’s the way I approach things as an individual – to play a bit, being interested in both short-term and long-term gains. At the same time I’m not obsessed with it; I’ll make a move when it make sense to do so.
The reopening boon is a pretty obvious opportunity to me. Many different industries and companies will experience a comeback. Just think of the places that people frequent in normal times that haven’t been for a while. For example – and please take this with a grain of salt because it is a matter of personal opinion and which companies one wants to be associated with financially – I bought Express stock a while back for just a few dollars because it was at an all time low. While I won’t see astronomical gains, they’ll be fairly significant for a company on that scale. Express is a great example of a consumer goods stock.
This may go without saying but if you’re thinking “boo capitalism” I would not recommend getting into investing. Or perhaps do some research then see what you think, get some advice, maybe work with an advisor. I was once running that narrative and I can tell you that it wasn’t helping me. Who knows exactly what’s going to happen, right? But in order to participate in the larger narrative instead of just complaining about it you have to become somewhat involved and gain some understanding of what’s going on. This is only if you want to do something about it or change something.
The more (market) knowledge one gains the better the decisions one can make and even try to help influence the market with conscientious decisions. I focus on sustainability. In our current web of systems consumer and investor choices do make a difference. A great example of this is the proliferation of vegan products!
As a side note, long-term gains and short term gains are both great. I don’t think it makes any sense and is far too ironic to discourage individual investors from banking on our nations economy in which we all take part in one way or another. Of course this comes with a measure of risk, but not so much when you make informed measured decisions. I wouldn’t say that I’m especially pro capitalist but I DO believe in using the resources available to the fullest. (Not to be confused with the using *up of resources or the past & present horrors of colonialism and aftereffects. There has to be a way for everyone going forward — the decolonization of resources.)
What helps me is realizing that the earth itself, our minds, life itself are the origin sources of wealth and that is always present, so the rest is really just a game in a way. (That doesn’t mean don’t be ethical — energetics, that’s another article!) This underlying realization makes the other stuff seem easier to navigate. I also happen to believe that now in the 21st century, given the choice, biological death is no longer inevitable or a necessity, and this has completely transformed the way that I think and live. And we have technology of various kinds to thank for this, companies one can invest in and intellectual capital, and also spiritual and philosophical evolution. It’s all tied together. There are many ways to participate, so really the behavior of the markets and economy can be quite interesting because those concepts are expressions of us.
The web of systems we have are evolving as we do and in my opinion the currents can continue to and must shift in positive sustainable earth-friendly directions. Yes, that does mean paying attention to what’s going on and taking certain actions however small to help out. An example of that would be taking a reusable bag to the grocery store.
On an end recap note and speaking generally for the upcoming reopening dates, I think the categories of travel, food and large retail stocks will be performing well.
**It is important also to think for yourself.** If this isn’t your bag that’s totally and completely legitimate and one’s prerogative. You might think of a new system for yourself. I mean look at crypto. There are many many ways to navigate life. And I don’t think this gets said enough. There’s always a different way to approach something. What I present is my personal slant on the market operating presently where I am at this moment, which I have come to enjoy enough to want to share about it.