Every once in a while, an event comes along that shakes the market to its core.
Two years ago, it was the COVID-19 pandemic.
Today, it’s Russia’s invasion of Ukraine.
This is a concerning development. No one knows how long it could last and what the effects could be, both inside the stock market and on the global scale.
But a lot of news outlets have wasted no time putting this event into extreme terms:
“Russia invades Ukraine in Europe’s ‘darkest hours’ since WWII” – Reuters
“Fear of War Grips Europe as Russia Orders Troops Into Ukraine” – TIME magazine
“Nuclear fears mount as Ukraine crisis deepens” – Politico
Look, I don’t want to downplay what’s happening in Ukraine. It’s absolutely tragic what that part of the world is going through right now.
But it’s important to remember that it can be easy to slip into a spiral of gloom and doom in a situation like this. That’s when you become your own worst enemy and sell at the worst possible times.
So today, I want to share with you a simple wealth-building secret that helped me stop being my own worst enemy when outside forces impacted how I saw my investments.
And I hope it does the same for you…
The Journey to Wealth Is Strange But Simple
Getting wealthy is a strange journey. It’s almost as if the universe wants to see if you’re worthy. Because it will continue to throw obstacles in your path to blow up your future wealth.
I was a victim of it in the ‘90s and ‘00s. I did more to sabotage my wealth than any enemy could have ever done… And I take complete responsibility for that.
So, the reason I continue to be here with you every step of the way is that I’ve been where you are now… Wracked with uncertainty, fear, and just plain unsure of what to do next.
It’s my goal to make sure that 5, 10, 15, and 20 years from now, you don’t look back and say, “Gosh, how did I let myself get scared out of my positions? Why did I lose so much sleep over all of those scary events?”
I want a different life for you. Creating wealth and having the life you want is something that everyone deserves… And it’s something that everyone can achieve.
It doesn’t matter what your educational background is… what color you are… what religion you are… or where you grew up.
Virtually anyone can create wealth if they follow a simple set of fundamental rules. And when you follow them, wealth will automatically follow you.
One of those rules is: Buy great assets and hold them. That’s it. You don’t have to be a rocket scientist to do that.
I’ve been preaching this approach since 2016. And if you’ve been with me since 2016, it’s changed your life. Because we own great assets.
How Ukraine Is Affecting the Markets
Right now, the market is already on edge and worried about interest rates and the Fed.
If you look at estimates, Wall Street projects that the Federal Reserve will raise interest rates anywhere between six and nine times over the next year.
They estimate that we’ll see rates raised by 150–225 basis points.
Friends, I’m telling you right now that will not happen.
Well, the federal government is the largest debtor in the world right now. It pays approximately 1.5% in interest on its debt.
Those payments go to over $700 billion a year if interest rates double. That’s almost 20% of the entire federal budget allocated to interest payments.
There’s just no way that the federal government will allow that to happen.
Now, as it relates to Ukraine… I think this situation actually works in our favor as longer-term investors.
Certainly, in the short term, it’s not pleasant to go through. In fact, it’s downright awful. But think about it…
Will Fed Chair Jerome Powell have the stomach to raise interest rates in the face of global turmoil like we’re seeing in Ukraine? I don’t think so.
I do believe we’ll see a short, sentiment-driven drop in the market because of Russia’s invasion. While there’s no way of knowing how long the weakness will last, history suggests it won’t be long.
In fact, according to BCA Research, the average decline of the S&P 500 after geopolitical conflicts is 10.7%. But on average, one month after these events, the S&P 500 recovered those losses. And one year later, it was up an average of 9.5%.
And that’s going all the way back to 1956. So, I’m not worried…
The key here is to remember that you own great assets. The second thing to remember is don’t sell them.
And while these assets can take a temporary hit from outside events, don’t confuse short-term chaos with a long-term trend. They’re two different things.
Continue Focusing on the Big Picture
If you stay focused on the long-term picture of continued American growth and technological adoption – you’ll be positioned to make a fortune from these assets. That’s it.
If you bought Apple stock in 2007, the only thing you had to be right on was, “Well, I think these smartphones are real, and most of the world is going to own one.”
That’s it. That was the only thing you had to get right to make a lot of money.
Or look at Microsoft… Its stock got hammered in the ‘87 crash.
But all you had to say was, “Well, I think Microsoft will be the go-to software for desktop computers. I don’t know how long it’ll take, but I think everybody will have a desktop computer.”
That’s all the research you needed to make a fortune in Microsoft.
So, if you can stay rational through these periods… and not sell at the bottom during a panic sell-off like we are going through now… the long-term returns will absolutely transform your life in a way that you can’t even begin to imagine.
Just enjoy your life and let time do the heavy lifting… and know that you have great assets.
Hopefully, some of you have been with me long enough to have seen that transformation.
And I know others of you who are newer with me might think, “Oh, Teeka, that sounds like a lot of hot air.”
I wish we had a way for people who have been with me since 2016–2020 – through some truly dark market periods – to share their experience with you.
They’d tell you, “No, this guy’s actually right. What he’s told me has worked. I’ve bought these assets. I’ve held onto them. Yes, it was very scary in 2018 and 2019. But it’s transformed my life in 2020, 2021, 2022, and beyond.”
That’s my goal for you… to transform your life without putting your current life at risk.
If you’ve been with me since the very early days, and this mindset has helped carry you through tough times such as the 2018 Crypto Winter and the massive Covid sell-off of 2020, I urge you to write in and share your story… so others can see the importance of staying rational.
And if you’re a newer reader, and this message gave you some perspective, I want to hear from you, too.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. In the coming months, we’ll hear politicians say a lot of scary, tough things about Ukraine. The market will whipsaw all over the place. And more investors will sell into volatility.
You don’t have to be one of them.
Instead, you could take a handful of “boring” blue chips and watch them return decades’ worth of market gains over that same period.
It’s a strategy we’ve been using here at PBRG since 2012, and it’s produced a portfolio-busting 98% win rate. No backtests. No cherry-picking.
Just real-life subscriber wins, and all during some of the most volatile markets in recent history.
That’s why I hosted a live event
earlier this week.
Nearly 12,000 online viewers learned what’s driving the volatility… how Wall Street has used it to make billions at your expense… and how you can use it to capture decades of market returns in about three months.
So, click here to watch a replay of my live event… and do it as soon as possible.
The market is churning right now, but it always recovers. Once things begin to cool, it may be too late to take advantage.