Happy 4th of July!
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There are many ways to invest and it’s important to be diversified in your strategy. I thought I was doing a pretty good job of that until my eyes were opened to other ways of investing. As you invest it’s important to also have a network of likeminded people around you as trading can get lonely and make you feel you’re on a deserted island. Garland Dabney, one of my friends from church and also a Howard University grad (HU, You Know!) became an investment partner and recently schooled me on Bitcoin.
Bitcoin is a form of virtual decentralized currency founded in 2008 and is used for electronic purchases and transfers. Similar to using a credit card for online shopping, Bitcoin can be used the same way with businesses that accept Bitcoin as payment. The difference is the middle man is gone meaning there are no transaction fees as you would have with banks and credit card companies. Many large companies worldwide are beginning to accept Bitcoin as payment and it’s widely considered the currency of the future. Here is a video link that explains it in layman’s terms – https://www.youtube.com/watch?v=LuA3xb-L8r8.
People also trade Bitcoin as they would a stock or currency and because it’s in its infancy stage, many people have made (or lost) enormous amounts of money. As of the time of this blog Bitcoin is trading over $2,500 per Bitcoin. Here is a chart for the past year and you’ll see what I’m talking about lol.
Those who invested in January of this year at around $1,000 and sold in June at $3,000 were extremely excited. Or even better, think about those who bought at around $200 per Bitcoin in January of 2015 and sold recently! The extraordinary run-up this year was mainly due to countries in Asia beginning to accept Bitcoin (along with speculative trading) and that trend should continue worldwide. You cannot trade Bitcoin in a regular brokerage account but there are ways to do it. If you decide to trade this you should start small and be disciplined due to the wild price fluctuations. Contact me for more information.
The S&P 500 ended yesterday’s session at 2429 up slightly since the last blog at the end of May. The market has basically moved sideways over the last month waiting on direction. Since November, any sideways movements have resolved themselves by eventually moving higher and making new all-time highs.
The world economy has been improving and the large US banks all recently passed their stress tests which had not happened since before the global financial crisis. Interest rates have been moving higher with more rate hikes to come and the massive central bank money printing operation (Quantitative Easing) which helped the US recovery is coming to an end. Rising interest rates are a sign of a stronger economy and this helps to curb inflation. Stock markets can continue moving higher as this happens but higher rates do eventually hurt corporate profits. The proposed tax reform which will help just about all corporations is another reason why I think US stocks will keep moving higher into next year. There will be small corrections along the way but unless something drastic happens investors are looking for more gains in the quarters ahead.
Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the financial markets. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape this year! Let’s connect and build generational wealth together. Enjoy your holiday and have a prosperous week ahead!
Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.