Investing has traditionally been seen as an easier way to participate in trends, alas, the question needs to be asked if this is still true in a world that is increasingly entering a state of chaos.
This chaos is here to stay for the foreseeable future. I am talking of a time frame of 10 years or more. While we will be seeing tradable trends the environment for longer term investors is going to be rather challenging as timing the moves will be of the essence. Good timing is a skill that eludes most investors and of course many traders who end up losing.
Whichever way we cut it, trading and investing times have changed.
We are operating against a backdrop of rapidly decreasing confidence in governments and decreasing trust in financial institutions. This fact alone will bring more volatility in its wake.
I know, I am not popular when I am foreseeing hard times ahead. It is so easy to stick one’s head in the sand and pretend that all will be okay again and you just have to sit it out for a little while.
When the “little while” turns into years you have to re-think your approach or you will be swept away with the general tide of panic and disorder which surely is going to be the order of the next decade. (No pun intend!)
So, what to do?
When it is hard to foresee exactly where things are going we need to tap into alternative resources.
I have talked about it before: Your creativity is of extremely high value in these uncertain times. Intuition outpaces logic every time in crisis times. Thinking won’t get you very far. We are dealing with uncharted territory. Logic won’t get you any answers, because the mind can only deal with what it already knows
On the other hand, you might want to ask yourself what matters most to you
Is it your concern for environmental factors, your belief in alternative medicine, new technology, education reform, science? Whatever the answer, the likelihood is great that you will have some understanding of these sectors and a feel for what is emerging.
To my mind this is how you need to approach your investing in the future in a time of deepening chaos. I might also say go with your heart. If you have an inner conviction you will be able to ride the storms and you will make better investment decisions.
There is no logic attached here, or at least very little. This is what most traders and investors find very hard to deal with. We are so deeply immersed into the perceived safety of the logical mind and consider our intuitive, creative side as danger territory.
Heart over the mind.
It is the one thing that will get you through the next few years and into the future. Forget about thinking too much, forget about over analysing the system. You cannot analyse something that is changing its dynamics almost on a daily basis. We do know though that people at large are increasingly getting fed up with authority. If you think this is a secure environment to be buying into treasuries for a long term hold, think again.
Uncomfortable as it may be, you need to open your eyes to a very different environment unfolding. I encourage everyone who is still reading to hone their own awareness and learn about what really matters: What really matters is learning to tune into what feels right to you.