Pain Equals Opportunity
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We talked about pain let's think about last week and hurricane Ian hitting Fort Myers, Florida. See that was close to home for me because I went to high school in Fort Myers, Florida, and the two areas that were hit the hardest, which are Fort Myers Beach and Sanibel Island, if you lived in those places, you went to my high school, that's where a lot of my friends lived, and I spent hours and hours on the beach at both Fort Myers Beach, and Sanibel. We talk about pain, obvious pain, unbelievable pain, but in the midst of that pain, lies opportunity.
A good friend of mine named Paul, who lives in Cape Coral, Florida, Paul is a real estate developer, and on the backside of this, he has been hiring like crazy, and he is prepared to help people put their homes back together, to put the roofs back on their house, to help them put their lives back together. He's going to be doing a great societal good in all the work he's going to be doing, and he's going to make a lot of money. Because he has something that people really need and that's the desire to get back in their home, to get their life back to normal, and he can deliver that. Out of pain came amazing opportunity for Paul.
Now when we look at the markets, one of the things you want to understand is that markets are cyclical, and people will say that the markets have changed, the things that used to work in the past don't work now. It's not true. Because at the heart of it markets are based on human psychology, they're based on fear. They're based on panic. They're based on greed, and these cycles, cycles of fear and panic and greed, they repeat themselves, and as such, there's always opportunity because the market always experiences elation, and euphoria and pain.
In the midst of the pain, are some of the greatest opportunities for you as a trader and as an investor. This is one of the things that I really preach, to my students. I preach about it in the Five Pillars of Infinite Wealth workshop, where we teach people how to build a life of Infinite Wealth, and in our Trading Matrix workshops, where we teach people how to be able to trade, and specifically strategies that they can do in incredibly volatile, panic stricken environments. These strategies, both as an investor and as a trader, they can be implemented in these times can be unbelievably good. It's one of those things that people will actually even get that it's a good time to do it, but guess what, either one, they're too scared because they don't want the risk, even though in the midst of risk is when there's the best opportunity, or two they're so badly damaged by whatever the panic is that they don't have any money, and even though they know what to do, they can't do it. This is one of the things we want to get out of this.
When we have these panics, there's a cycle that repeats, and the cycle that repeats is massive wealth transfer. Every time the market goes through a panic, there's a massive wealth transfer from the middle class and the poor to the wealthy. Now for some of you this is not gonna be very popular topic. I'm just being honest. It's the truth. You can complain and say you don't like it, or this is evil capitalism or whatever these things are, but this is actually life. This is the truth, and what's so interesting is why does this happen? This happens because of people's beliefs about money, and about their psychology of money.
As a general rule of thumb, the wealthy have better, more useful beliefs about money and a more useful psychology and they understand how to manage their wealth, how to manage the risk such that when the market corrects when the market goes into recession, when the market goes into a depression, whatever the case may be, they have reserves to be able to put to work and they have superior knowledge of what to do in those circumstances. The poor and middle class are undercapitalized, over leveraged, don't really know what they're doing, and so when the market goes down, they're the ones that don't really understand what they're doing, and they have too much risk, their lifestyle is risky, they don't have enough money, and they're over leveraged because of it, and so now they're psychologically vulnerable. What happens is, they finally panic, and they puke. They're either forced to puke, or they just puke straight out their own fear, and who they puke to they puke to the people who are capitalized, and the people with the knowledge. That is why you get top 1% of Americans have taken 50 trillion from the bottom 90%. 50 trillion. The pandemic boosts the super rich share of global wealth, this is from 2020. 2020 is another classic example, huge wealth transfer from the poor and middle class to the rich. The rich got really rich in the pandemic.
We can sit and bitch about it, or we can figure out how they do it. The great news is, is I know how they do it. I know all the different steps that need to be taken for you to join them, for you not to just to be the 1%, but to be the .1%. The .1%, who can set themselves up and have the knowledge to take advantage of a situation like this because you only need one of these, to purchase these assets and run these strategies in these distressed conditions to change your life. Seriously, to change your life. How do you think about this?
First of all, do you have your wealth protected? Because the bottom line is, is that we're likely going to at some point go much lower. Our belief is that central banks have not raised rates nearly enough, and we think as they raise rates, it's a going to create some kind of financial disaster, we already had a mini disaster last week in England, in the UK. But we're going to start to have major financial disasters as this goes further, and then what's going to happen is they're gonna have to pivot very quickly go back the other way. But if they don't raise to much, a lot of these issues are going to continue to persist and cause a lot of pain for people. If they do have to continue to raise the market at some point is going to get clobbered. If you look right now, the average shareholder has not sold. He's got his head in the sand, and he's hoping that if he ignores it, it will go away. Maybe this is you? Are you in, you know that saying when they say denial - it's not just a river in Egypt, is that where you are right now? Are you in denial of what's happening? Are you praying? Are you hoping that it's going to turn around and bail you out? Because just remember, this is the beginning of the cycle. When we go from denial, then we finally go to anger and capitulation, and finally, acceptance.
Do you have your wealth foundation buttoned down? Do you have your risk contained? That's first because you got to make sure you don't lose it. Not gonna have anything to do anything if you lose it. But then once that's done, what is your plan to be able to take advantage of all of these assets when they go on sale? Do you have a plan? These are the things you need to think about because they have massive implications for you. Now the great news is if you don't know you know somebody who does know, and that's this guy. I can help you get straightened away. So you're ready for when it comes.
You can check us out at tradingmatrix.com, and stay tuned every Tuesday where I continue to bring information to you like this today. That will help you think about trading in a different way that will help you take your performance to an elite level. Have a great week. I'll see you next week. God bless. Bye.