Don’t Boycott This Bull Market!

Ever since the death of George Floyd, it seems that Black Lives Matter more now than in any other time I can remember.

Chief executive officers from some of the biggest companies in the world – AT&T, Merck, and Apple among them – have spoken out this year against police brutality and systemic racism. Protesters from  all over the world took to the streets to express their outrage and demand that police brutality finally be addressed. Big-name advertisers have boycotted Facebook, demanding that the social networking platform do a better job of monitoring hate speech on its site. Statues and monuments of historical figures in American history who owned slaves are being taken down.

It feels like we are in the middle of a race war and a pandemic at the same time.

So…what does this have to do with the stock market?

A few weeks ago, I read an article that accused the stock market of being racist against black people.

The low participation rate among black people in America may serve as proof. Only 30% of black households have a retirement account.

Is there systemic racism on Wall Street practiced by firms like Morgan Stanley and Goldman Sachs? Absolutely. I’m a black man and I worked on Wall Street for ten years; during that time, you could count the people on the trading desk that looked like me with one hand.

That being said, let me make one thing clear:

One of the reasons I love the stock market is that no matter who you are or where you come from, you have a chance.

Anybody could have bought Amazon…anybody.

Anybody could have bought Netflix…anybody.

Anybody could have bought Apple…anybody!

There’s no pay discrepancy when it comes to owning stocks.

For example, if two people – one black and the other white – invested $10,000 each in Amazon in 1996, and never sold it, they would both have the same return of $12,000,000. The white investor wouldn’t make $12,000,000 while the black investor only made $6,000,000. They would make the exact same return on their investment.

One of the beautiful things about investing is that stocks are completely unbiased. They will go up or down based on a multitude of factors, but the race of the investor is not one of them!

Stocks don’t care who owns them or what your family history is. They don’t care if you own 100 shares or a million shares. Stocks are going to do what they’re going to do…and generally speaking, over the last hundred years, they’ve pretty much gone up.

So: If you’re black, don’t buy into this nonsense that “the stock market is racist, therefore you should boycott the market.”

Boycotting the market will be at your own peril.

I’m black. The stock market has been good to me.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

Is The Stock Market Still For Me? An Update…

Hi, all. In November of 2017, soon after this blog was born, AnneMarie posted here as a new investor. She posted a follow-up in August 2018. Here’s where she is today.

THE STOCK MARKET IS STILL FOR ME, by AnneMarie Balogh

Hi Wealthy Joe readers!

It’s been close to two and a half years ago since I started investing in the stock market at Eric’s strong suggestion.

Some things have changed since then. What hasn’t changed, though, is this: I’m still in the market, holding my stocks. 

As I said in my follow-up post nine months after my first, I opened a Roth IRA with TD Ameritrade to complement the brokerage account I had with Robinhood.

Last year, when TD Ameritrade started offering commission-free trades, I opened a brokerage account with them as well, and transferred my Robinhood portfolio into it.

It was simply a no-brainer: as a TD Ameritrade client, you receive 24/7 phone support (from some very nice and knowledgeable people!). Robinhood doesn’t even offer phone support.

And – very important as we advance in age – Robinhood does not allow you to name a beneficiary of your account. Eric discovered this over a year ago, and amazingly they have not changed this yet!

Unless you’ve been living under a rock, you know that over the past couple weeks, the market’s gone down significantly, culminating in a near 10% drop yesterday which brought us officially into a bear market. So…what effect has this had on me?

My account, which had been on the up and up until now, is now down. Over the time I’ve been in the market, I’ve invested a total of about $20,000. As of this evening, I’m at a little less than $14,000.

Does it hurt? Yes. Am I worried? No.

Eric’s shared this graphic from The Motley Fool’s Morgan Housel a few times on this blog. It reminds us that despite what has gone on around it over time, the market has continued to go up:

morgan housel's timeline

I’m still in the market, holding my stocks. 

The stock market is still for me.

If you’re not yet invested, now is the perfect time to start. Stocks are on sale right now! You can get some fabulous bargains.

If you are currently an investor, see if you can find some cash to take advantage of the low prices. That’s what I’m going to do.

The stock market is still for me and it’s for you, too!

Go buy Eric’s book at the link following this post. 🙂

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)