It won’t last forever

In today’s Exponential Investor…

  • Frustration and anger
  • Time frame is crucial now
  • Remember this one thing…

What takes us back to “normal”?

What is the catalyst that sparks people into the realisation that things can once again be like they were?

Right now, it’s really hard to see the world ever being like it was even at just this time last year. A time when you could walk to the train station and jump on a train without bother. Where you could walk into the shop and just shop without any anxieties or stress.

Where you could go wherever you wanted, see whoever you wanted and not be restricted and restrained from doing so.

The very idea that we could ever get back to that in any short period of time is really hard for people to fathom right now.

Understandably so. The utter frustration and anger that builds when you’re forced to do anything is immense. When you have an elite, select group of the establishment telling you – well that makes it even worse.

It’s also very clear this distorted view of lockdowns being effective is fatally flawed.

Covid-19 or Spanish flu?

If lockdowns worked, then we wouldn’t be in the situation we are facing now. Doing the same thing again is the explicit definition of insanity; doing the same thing over and over expecting a different outcome each time.

It’s clear more lockdowns won’t work in doing anything to the outbreak. It will kill business, it will cripple the economy, but it won’t impact the virus.

Yet here we are again faced with the situation of more draconian measures. If these fall on you, wherever you are, it’s going to be tough. It’s mentally going to be stressful and difficult.

But it also won’t last forever.

It can be very easy to fall into despair about the situation. And when you’re locked down under these measures, days feel like weeks, weeks feel like months and months feel like years.

But it won’t last forever.

Not even the Spanish flu, that was far more devastating that we’re experiencing now, only lasted two years. Now I know that’s a long time. However, 1918 was 120 years ago. That outbreak (pandemic) was also worse, technology wasn’t as good and biotech research wasn’t even close to what it is today.

To think we’ll be living through what we are now, long term, I think is a mistake.

Getting caught up in the emotion and frustration of it all, however, can certainly make you think that way. You must do all that you can to see the future – that is inevitably coming at us.

Also, with every day this current pandemic goes on, we’re another day closer to it ending. When it ends, and it will end, will you have done all you can to put yourself in the right position for it? Or will you regret not doing more?

My view on this is that you have to take a positive approach to your investments now, more than possibly any other time before. As an example, I’ve not invested more into the market in such a short space of time as I’ve done since March this year.

For me, these conditions we’re in now are ripe for investment into companies that will outlive, outlast and outperform in the long term.

Which stocks and where?

That means you should be picking stocks, investing in stocks and finding the companies that long term will build a robust, strong, valuable portfolio. Put the ETFs and funds aside for the time being.

That’s not to say those can’t play a great role in a portfolio. But for me, now is the most important time you will probably see for at least another decade to be taking a punt on the stocks that have been hit hard, but won’t die and could deliver huge windfalls over the next 12 to 24 months.

That target range is important.

Let’s say that this pandemic does stick around as long as the Spanish flu did, and we’ve got another 14-17 months or so of this nonsense to ride out.

Do you think that as we get to the end of that period, the markets and stocks that were flying before all this will only just start to deliver the returns for investors then?

Or is it that as we start to see the light at the end of the tunnel, that’s when they take that leg up?

And what if this pandemic ends sooner? What if by Christmas there’s a vaccine, or something that dulls the impact of the virus, levelling it out as nothing worse than the normal flu?

When do you think these stocks will run then? And will you want to have been positioned in them, early, before the masses pile back in? Or would you want to compete with the bidding frenzies that will come when there’s a solution to all this?

As it looks like everything is starting to kick off again and that the second wave and second lockdowns are about to hit full force – now is the time to take action on your investments. When the masses are running for the hills again, you should be picking out the stocks that have all the potential in the world, to be front runners again in our return to the world we’re used to.

In tomorrow’s Exponential Investor I’m going to name the exact stocks in the exact sectors I think you need to be seriously analysing as part of your strategy. The kinds of stocks that are well prepared to weather this storm, survive and outlast it.

The exact areas I’m seeing opportunity and the stocks in those areas that the masses won’t be thinking about, and when they do, the smart money will have already moved into.

It might all look bad right now, but what I’ll show you tomorrow might just change all that.

Also, remember, it might feel crappy right now. You might be frustrated, angry and exasperated with the situation. Even I feel like that from time to time.

But it won’t last forever.

Regards,

Sam Volkering
Editor, Exponential Investor

Category: Commodities

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