Innovation and communication – the keys to wise investing


Sadly, there are many people who don’t know much of anything about money. And why is that?

In my 35 years of experience in the financial world, I’ve learned that most spouses don’t talk about money. Which then leads to parents not talking to their children about money, and so on. And if we aren’t willing to talk about money with those closest to us, then why would we talk to a stranger such as a financial advisor?

So, what do we do? We watch those folks on TV who are all knowing about the markets and money, and we listen on the radio in the car going to and from work, and we let that influence our investment ideas. Keep in mind, all those folks have an opinion of the market and have already positioned themselves based on that opinion.

They will gladly provide their opinions; they all want to demonstrate how right they are. They’re counting on you to follow their advice and help prove them right. After all, it’s easy to listen to someone that you’re not standing in front of, and act based on what you’re told and believe is true. But, if you’re like most, you never really do the homework to learn if what is being said is true.

I, however, would like to challenge you to think differently about investing. What is the one thing that has truly driven the market from its inception? INNOVATION!

Innovation is best defined as “the creation, development and implementation of a new product, process or service, with the aim of improving efficiency, effectiveness or competitive advantage.”

Innovation doesn’t care what party is running the country, what the rate of return is, or where the market is going. It doesn’t care about the day-to-day musings of someone on TV or radio. It cares about an idea that solves an issue we face today.

In my time in the trading pits of Chicago, I saw innovation many times. That includes the addition of new markets, such as stock options and interest rate futures, which helped stabilize other markets.

Today, innovation provides us with other solutions that include technology like robotics that can do the work of many people without complaining or asking for more money. Or how about vertical farming, where a farmer can grow 100 times more in the same footprint and use less water and no chemicals.

Innovation can even provide many financial benefits such as tax-free income in retirement and debt elimination prior to retirement, or how to grow your money in more than one way at a time, risk free.

In the future, we need to look out for the coming of other ideas, like 10G. It’s not like 5G as it’s a whole new way to move and acquire information faster, using the current infrastructure. But the really big area to focus on is technology that provides health benefits, things like MRNA where they’re finding potential cures for things like cancer and Hep-B.

There was a vaccine created within hours of the Covid DNA breakdown being provided to pharmaceutical companies.

As I said, innovation doesn’t know or care about what party you belong to. It only cares about what it can do to make our lives more efficient and effective.

You’ll notice I do not provide specific stocks to invest in. I am not a registered advisor, nor do I carry a securities license anymore. The burden of holding such a license limits my ability to invest in what I want, when I want. But that’s another story.