“The end of democracy and the end of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations” -Thomas Jefferson
I firmly believe that having a voice and utilizing it is important. I served 4 years in the military and one of the many things it taught me was how powerful having a voice is. If you do not speak up, your problems will not be addressed. Did you know that 62% of Americans voted in the 2020 Presidential elections? That means that your vote, out of 308 million people, gives you a stake of .0000003% in the election as an individual. If you lived in Wyoming in 2020, you have the biggest stake in an electoral vote coming in at .0001%. Of course if you have a platform that you can influence people your can largely be more effective. We do not play political games here, nor would you ever hear us talk about it. My point is not to down play your vote or to down play the political system. Largely, your votes count and are your biggest weapon as a citizen in a democratic society. However, there is in fact a larger factor in todays global society and it is within your grasps. This factor is old as time.
Before democracies, parliaments, monarchies and other political systems were laid out, we traded and bartered. Trade and currency are so imperative to a society because they fuel almost all incentives. If you were asked to be given 1,000,000$ for your non-dominant hand, would you give it? For me, absolutely not but others would consider it. Money and love are so powerful that they have fueled wars for thousands of years. But we won’t be talking about love here,(even though we are closing on Valentines day) but we will be talking about the effect of your dollar. How your dollar can change your life forever. How easy it is to vote everyday without even registering. You want to take down large corporations? Seize assets from large financial corporations? Even save the earth? It can all be done with the money in your bank account. Sounds dramatic but its more than true.
The stock market determines a lot of things in this country. It determines the net worth of pretty much every registered billionaire today, how much borrowing power a company has, who controls those companies; so on and so forth. So what? You do not have millions or billions of dollars in your account to attain a majority stake in the market nor do you have the platform to put down businesses with unethical business practices. Well, maybe you do not but if people come together as a communal entity to determine which businesses they want to support, they can. If you think that a certain athletic apparel company, that utilize sweat shops are unethical, don’t invest in them. If a company doesn’t support the same ideas as you, don’t invest in it. Today we are seeing a phenomenal change over in the percentage of the market that is owned by the youth. As the age of Wall Street averages down, we are likely to see a huge monumental shift to more youthful, prospective and exciting companies coming forward. Yes, this may effect volatility and daily changes in the market but we at Financial Foundry LLC welcome this new wave and so should most Americans. More volatility means more opportunity for everyday Americans. More opportunity means a more smaller gap between the ultra rich, rich and the rest of America. This
How To Go About It
There is a lot of crazy headlines going around with GameStop, Reddit warriors and other crazy headlines this month. Do not let mainstream media or Reddit determine your financial future. I gave a forewarning in one of my last couple posts about investing in GameStop or other Reddit inspired stocks and it has came to fruition. From its monthly high GameStop is now worth 18% of that. That means that if you invested $10,000 that day you would now have 1,800$. How did we know you might ask? Well these trades have been around since the markets internet inception period. They are called momentum trades. The market is not a friendly place because it is unforgiving. In the past I have made thousands of dollars shorting stocks just like GameStop. Stocks that over night gain over 50% in large part decrease rapidly unless they have future value. The reason? It is not RobinHood’s, TD Ameritrade or any other brokers fault. In fact most should thank them. It is the fault of greed and fear. The people who sold their shares made their money and others did the same and as the pyramid crumbles it becomes more and more inevitable that the stock will crash. Will GameStop continue to exit in 10 or 20 years? Probably not, unless they develop an entirely new business based on a completely other product. This sounds evil, even as I type it but its the sad truth. At the end of the day, Redditors caused the spike and they caused the crash. Maybe they beat a hedge fund but that is not new to the market. Short squeezes happen daily and all across the market. It is common for people with large followings to prompt a buy that is heavily shorted. To be honest, these last couple years, hedge funds who shorted penny stocks have been getting burned hard due to retail traders and large trading groups. Enough of that crazy scenario, lets talk about how you can voice your opinion.
Starting a long investment, something which you hold onto for a long time, gives you a vote. If you invest in companies that support your ethics and you believe have a bright future, not only do you make money over time but you also have a say in things. In fact hedge managers, who hold millions or billions of shares scan for spikes in interest in companies or sectors and park their funds in those sectors. That means that you can influence the future of everything! Your money, in a sense, is your vote. Do not waste your voice! I hope you all have a blessed weekend!