Trade The Journey

Trade The Journey

Wake up every morning and I’m thankful!

I hope all is well and that everyone is as safe and as positive as possible.

These times are a cause for self-reflection as well as a reflection on the system we call normal. Much has changed since the civil rights protest in the sixties and seventies like new technology, social media, and the emergence of new world superpowers.

The video of an officer placing his knee on the neck of George Floyd constricting his breathing and rendering him lifeless on camera is a reminder of what has not. To most, the incident has emerged into the national spotlight as an event unimaginable in these modern times. To people like me, this is just another incident in the line of many detailing the true feelings towards people of color.

In these modern times, how could something like this happen? How do we find ourselves in this position in 2020? I wish I had the answer. From the pandemic to the economy and to race relations, we have utterly failed. Although it may be easy to blame the President for his often inflammatory statements, I suspect these feelings existed among many before he became President.

Now, with the advent of social media, no longer does it take days for a story to be reported. Nor do we have to wait for reporters to put their spin on the account. The story is shared in its rawest form in a matter of seconds and then shared worldwide.

I’m quite sure; if it could be done, they’d turn the protest into a war zone. With the world watching, this event is now a global issue. This feeling and experience are common among black people. I can speak with almost certainty that each of us has had an encounter with the police. Whether justified or not, we feel the tension, fear, and nervousness when the blue and red lights illuminate our rearview mirror.

 

In fact, from a young age, we are taught about the history and present danger of police stops and how to handle the situation correctly so we can arrive home safely. Even this isn’t enough.

 

The protest won’t last forever, and neither will the Coronavirus. At some point, the protest will cease, and a vaccine for the Coronavirus will be created. But what memory will we as a country be left to pursue?

Is this a moment of change, where we will truly realize the meaning of equality? Or will this be a permanent stain we pass down from generation to generation as a cautionary tale of what fate may behold us?

No one can answer that question. Change has never been easy. But what does it take for a nation to recognize the pain of a people?

As if these circumstances aren’t enough, the Coronavirus is ever-present, and the economy continues to proceed on shaky grounds. I am perplexed and surprised to see the market steadily rising higher. Data continues to show that we have entered into a recession, yet the market does not reflect this reality.

I’ve thought it to be a bad time to participate in the market. Most of the positions I hold are long-term. The Federal Reserve continues to assure us they have plenty of weapons to fight the downturn, and there is no need to worry.

They sprung into action, the moment the market temporarily crashed in March and have continued to prop up the market. The Fed has been actively buying ETFs, bonds, commercial paper, and securities to provide liquidity and confidence. I don’t doubt the Fed can continue to create credit facilities and provide a backstop to any liquidity crunch that may arise.

 

However, what are the long-term effects on our economy, monetary system, and standard of living?

No one knows because most of the actions the Fed has taken, it has not done so before. Unfortunately, for the Fed and ultimately for us, a vaccine for the Coronavirus has yet to be discovered. With states beginning to reopen and protest gripping the nation, one can only imagine how this might play out.

Businesses continue to file bankruptcy, and both commercial and residential renters continue to advocate a suspension in rent payments. Technology, as I mentioned in the last post, continues to eliminate jobs and will do so at an alarming pace. Twenty-five percent of the United States is now employed.

These are turbulent times.

Everyone is eager for things to return to normal, but I think this is the new normal. While I feel that ultimately this tragic situation will bring healing, it will first bring anger and resentment. At every turn, a situation confronts us that demands our attention.

 

So what can we as individuals do?

“In the midst of crisis, there is also opportunity.” Sun Tzu

Now is the time for change not just as a nation but individually as well. Eventually, this regime will pass, and where will you be? Regardless of which party enters into office, the after-effects of this period of crisis will be felt for generations.

What adjustments will police departments make? Will they need new technology to address the challenge at hand? How will the police department increase the transparency detailing the personal history of officers it continues to employ?

Will the FED ever be able to downsize its current position in the economy? What will the economy look like when it does so?

How will technology change the industry you participate in? For the first time in history, globalization became a problem because many economies depend on other economies for goods and services. How will nations restructure their economy? What will be China’s role as many countries begin to disassociate themselves with China as a supply chain?

There will continue to be a rising middle-class globally, how will that affect investments in emerging markets?

These are some of the questions you could ask yourself to position yourself ahead of the curve. In the coming years, retirement and stability may be a thing of the past as each country will seek to recuperate from the Coronaviruses’ effects. How will you prepare for this?


This week in Review:

This past week was tough. I like many have felt the effects of the Coronavirus on my bank account. Luckily, I’m used to eating at home, so my expenses have been kept to a minimum. Most of the things I have purchased are out of necessity.

This is an excellent time to save. In the recent monetary stability report, the Fed has warned that another outbreak or shutdown would have an extremely negative effect on the economy. With all that is going on, I hope that a second outbreak does not occur.

However, I fear that a second outbreak and immediate downturn could likely be around the corner.

 

This past week deserves the grade of “C” for steadiness.

Stay safe, positive, and profitable. And please keep the memory of George Floyd, Ahmed Aubrey, and countless others who have died unjustly in your consciousness as motivation to change the world around you.

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