Building Wealth Doc's note: Today, I'm doing something a little different and handing the reins over to Matt McCall.
In today's special issue, Matt explains why he's optimistic about the future... where you shouldn't get your stock ideas... and why you should be scared about investing...
I'd like to let you in on a little secret...
I'm embarrassed about my participation in financial news.
I wasn't connecting with investors in the right way.
On TV, I never had enough time to explain why I was so bullish in the face of all the negativity the networks were pumping out. I also wasn't able to explain all the risks involved with investing. I couldn't educate people properly about investing – or in the way I like to most – with just the few minutes I had to talk on TV.
And, of course, I was only telling people what companies to buy... what companies I liked in that moment. There was no way to tell viewers when to sell.
And to get my advice assumes you were lucky enough to tune in at the exact time to catch my three-minute segment – just one of the thousands of experts across dozens of platforms.
What is the point of giving you stock tickers if I can't talk you through the entire process?
It's just plain wrong. And it creates an environment in which there is no real forward-looking research. There's no quality control, no accountability, no watchdog making sure that what these people are saying is accurate. It's like a weatherman telling you it's going to rain just because it rained this time last year.
I consider this one of the biggest problems for ordinary investors in America today.
We're paying attention to people who are entertainers first, and investment experts second. They're pumping out story after story... and those stories are almost always negative. They were depressing 10 years ago and they're just as depressing – if not more so – today.
Where are the "feel good" stories?
Why is nobody talking about the incredible amount of money that was made in the stock market over the last decade... and the money that can be made in the next 10 years?
If you've been forming an opinion about the stock market from TV, the newspaper, or most financial websites, you're not going to make smart investing decisions. Believe it or not, science has proven this to be true.
Behavioral economist Richard Thaler conducted an experiment in which participants ran an imaginary college endowment fund. They had to decide whether they wanted to receive information about this fund monthly or once every five years. Then they had to make their investment decisions based on that information.
Who do you think had the better returns after a 25-year period?
If you guessed the ones receiving information more frequently... you guessed wrong.
The folks who got their information less frequently ‒ and therefore traded less ‒ outperformed those who received information more often. And not just by a little bit... by double!
Fidelity Investments made a similar discovery after conducting its own experiment – reviewing millions of brokerage accounts to see if they could find common factors among the top-performing accounts.
Well... they did. The top-performing account holders had actually forgotten about their accounts. They hadn't touched their portfolios in years!
Warren Buffett once said that "market forecasters will fill your ear but will never fill your wallet." And that's one of the most important lessons I've learned in my 20-plus year career.
You can't get your stock ideas from CNBC or Fox Business. Your investment strategy can't be to listen to what everyone else is saying – especially when so much of it is based in fear.
Most people fear the future more than anything else. And the media preys on that fear.
But I'm an outlier.
I don't fear the future. The future excites me... And the investment opportunities it will bring our way excites me even more.
If you're listening to the financial media right now, you're probably starting to get a little anxious.
They're discussing their concerns of inflation... uncontrolled money-printing... and an "aging" bull market.
But let me tell you something...
These concerns have been around for years – for decades even. Through it all, stocks have rallied. And they're going to keep rallying for the foreseeable future.
Anyone familiar with my work knows that I believe the coming decade will be the greatest in the history of the stock market. The U.S. economy is on the verge of massive expansion – a period of unimaginable innovation and vast wealth creation.
I call it "The Roaring 2020s."
At the end of this decade, our lives will be very different than they are now. The convergence of technologies like artificial intelligence, 5G networks, genomics, breakthrough battery technology, electric vehicles, alternative energy, and quantum computing will lead to the creation of industries that we cannot fathom today.
The investment implications are nearly endless.
So... don't let the financial media scare you out of the stock market. Once you let this fear enter your psyche, you can kiss any hope for a comfortable, stress-free retirement and financial freedom goodbye.
Now is the time to be invested – before these innovative technologies enter their "lift off" phase and shift from regular growth to hypergrowth. I'm talking about the kind of hypergrowth that leads not just to 5X and 10X gains... but to 100X gains and beyond.
These are the kinds of profits we're after in my brand-new investing newsletter Matt McCall's MegaTrend Investor. I just unveiled all the details – and a charter membership offer you don't want to miss.
Don't worry if you weren't able to watch the event live. You can click here to watch a replay and take advantage of this once-in-a-lifetime offer.
I encourage you to join me on this wealth-building journey. Once these hypergrowth megatrends take off... it may be too late.
Good investing,
Matt McCall
October 21, 2021