4 Reasons You Can Remain Positive in a Bad Market or Economy
THE SKY IS FALLING! That is what it feels like for most of the people that live in my province, Alberta. We are a resource heavy province where a substantial amount of jobs are oil and gas related, hence why most of my conversations with clients, friends, family and random strangers seem to end up in doom and gloom talks about how bad this year is going to be for our economy. (Although, I have personally tried to do my part to boost the economy by buying more shoes, however, I feel my efforts are in vain. 🙁 )
Because my personal QE (quantitative easing) has failed to stimulate the economy in Alberta as I had hoped, I offer other reasons you can remind yourself that things aren’t always as bad as they seem.
#1 – The Market is Not The Economy and The Economy is Not The Market
Although most people will assume both are perfectly correlated, they aren’t. At times they may fluctuate in sync and they aren’t fully mutually exclusive, but people often confuse that they are one and the same. Not to mention – which economy or market are we talking about anyways?! There are 64 regulated markets in the world, not to mention all the markets that aren’t listed, and thousands of economies.
A variety of things can affect a market, such as someone dumping a load of money into the market, that would drive prices higher. The same as the government throwing billions of dollars into the economy to stimulate job creation or offering tax incentives.
Although, I won’t go deep into this topic right now, just know that even though my specific Alberta economy is not too hot, there are economies in the world that are doing better, and visa versa, there are stock markets doing crappy, meanwhile, other markets are humming along okay. Opportunities are everywhere.
Don’t forget, money is always in flow and always flows to where it’s cheapest!
#2 – Opportunities are Global, Not Just Local.
New opportunities are created every day. Trade happens instantaneous, and all you really need to make money now-a-days is a laptop.
Fear = Opportunities
Example: In Alberta right now, many families are leaving our province in search of jobs elsewhere, this has lead to a boom in moving businesses.
Don’t forget, for every action there is an equal and opposite reaction!
#3 -There are 2 sides to every transaction. Never forget this!
One of my favorite books on investing is Coreen Sol’s book Practically Investing. She says this:
“For every transaction, there is someone willing to buy and someone willing to sell at an agreed price, both believing that it’s good value and that the counter party is a little crazy……. That’s what’s fun about this. The differences of opinion are what keep markets humming and prices continually adjusting to find the fair value. It’s been said that it’s only a fair trade when both parties consider the other to have received the better deal.”
Which on a side note got me thinking that maybe the secret to a good marriage is that you always think you got the better deal, and that your partner is a little crazy for falling for you. Actually, it probably makes for a great marriage when both partners think they married ‘up’. Food for thought. Anyways…..
To illustrate this, I hunted down and found the perfect commercial! WATCH THIS 1-MINUTE VIDEO!! It’s so funny I totally LOL’d and it illustrates my point of each party thinking they got the better deal when trading.
Don’t forget, the economy will never disappear because we need to trade – that’s how we survive and grow as humans. Systems, governments, political theories, rules, laws, and markets will change over time, but the fundamental aspect of trade will always be around as long as humans need each other for survival.
Funny! I’m still laughing! Good to point out that I don’t actually endorse Etoro and actually, I don’t think it’s a Canadian company anyways – none the less the vid is priceless and worthy of illustrating trade.
#4 – It’s all a BIG GAME!
Here’s the thing, if you view it as a big fun game of making money, be that in your job or your business or where you invest, it will become fun, light, and easy. If you stress out about it, it will become hard, difficult, and money will seem impossible to earn, make or attract. It’s all how you view it.
Like attracts like.
So when feeling the burden and worry of a bad economy or crappy market, remember to stay positive and try to make a game out of it!
Don’t forget opportunities are everywhere, you just may need to uncover your eyes and begin to look for it!
Micro is looking small and the problem with micro is we all too often stay small, look small and play on a smaller level. Macro is big picture stuff, and big picture stuff goes like this: People are going to keep doing everything in their power to survive, increase, advance, and continue on.
So when the economy is crap and we feel like rolling over and playing dead from time to time and when the world feels all doom and gloom in our heads – that’s okay too – it’s why they invented Netflix, wine and Ryan Gosling movies.
From the girl who is always glass half full, literally and figuratively, don’t forget tomorrow is a new day! 🙂
