The Crystal Ball Method – How To Grow Your Investment Quickly
Each month with my Mastermind Groups we look at different aspects of the economy and how one thing can impact on the other.
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Strategic Investing is like having a crystal ball and being able to see the future impact on the economy.
For example – when container shipping rates are high that will have an impact on the cost of goods and on inflation. It seems obvious doesn’t it? Yet, for many it is in the too hard basket to check container shipping rates and they wonder why increases in inflation or economic changes to their lifestyle come as a shock.
A few months ago the container prices started to go up due to various reasons including:
- The Panama Canal – droughts have seen the water levels low with ships either avoiding the canal or paying premiums to go up the waiting list to go through the canal
- The Suez Canal – conflict in the Middle East saw container ships avoid this shipping lane and divert around South Africa adding additional costs and delays in goods.
So, when inflation in the US started to go up again, it was no shock to my clients who were well informed about the changes in pricing.
Food Inflation
When New Zealand suffered a cyclone in February 2023 that wiped out so many export vegetables and fruits, who took any notice of the impact that would have on countries that import from NZ.
In 2023, for the first time in history, Spain imported tomatoes instead of exporting them. What impact did that have on countries that would normally import tomatoes from Spain
There was no doubt that cost of fresh foods to the consumer would be going up. However, again, the headlines were unexpected increase in the cost of goods surprise consumers.
It wasn’t a surprise if you looked at the bad news stories and connected the dots.
Bad News is Good News
Each day, I scan the newspapers online and find the bad news stories.
For every piece of bad news there is good news. An opportunity to be ready for what the economy is going to be doing in the future.
When my husband saw the stories about Spain importing tomatoes he started growing his own together with some other fruit and veg that we enjoy eating.
He saw the bad news and the opportunity so the impact of higher food prices has had little impact on our budgets.
It is the same with investing. Find the bad news stories and the investment opportunities.
Last year, I was about to give a presentation on strategic investing in Dublin. There were many attendees from UK at the event. That morning, UK kids were due to go back to school but with just a few hours notice the schools were closed and kids weren’t allowed to start their first day.
The background was an inspection carried out over the summer months found the school buildings needed maintenance and the schools were deemed too dangerous for the kids.
As I stood on the stage, I asked if the audience had heard about the short notice for school closures. Some had and the rumblings around the room were about government incompetence.
So, I said, what opportunities do you see from this bad news story?
That got them thinking and coming up with ideas. One business owner got on the phone contacting the school his child was at and won some work.
Bad news turned to good news when you look at the opportunities rather than the bad news story.
My Crystal Ball System
Whenever, I hear or read about bad news, my brain kicks into opportunity mode.
To paraphrase one of Newton’s Laws – for every action there is a reaction. If there is bad news (an action) what reaction will turn this from a negative story to a positive outcome?
When the bad news came out about the cyclone in New Zealand devastating the crops – apples, pears, kiwi fruit, avocado and bananas – if you were a farmer in another country there would be an opportunity to plant more crops and be ready to take up the slack in imports and the increase in food costs.
It would have been timely to invest in corporate-owned farms.
My Crystal Ball Method is to take a look at bad news stories, think about the impact it will have and find the investment opportunities.
Then a year or two down the track while you are raking in the profits there will be people who have missed the opportunity wishing they had known about it sooner.
Market News and Strategies
Each month, my clients get a live report and discussion on what is happening in the markets, the news stories catching my attention and the investment strategies I’m looking at.
If you want to learn more about investing strategies join either the Zero to Millionaire Membership or the KNI Mastermind Membership today at Karen Newton International
