The human mind is a fascinating thing. The power of the mind, the unexplored subconscious, the suggestibility of human nature. It can lead humanity to great things, amazing creations, and revolutionary technologies.
You only need to look at an event like the TechKnow Invest Roadshow, coming to Melbourne next Tuesday. This event puts on display some of Australia’s finest and most cutting edge technology companies. It’s a showcase of what humanity can be capable of when we put our mind and effort into something. Regardless of market conditions, it’s proof that great things can come at any time.
Another fascinating thing about human kind is what you can tell the human mind, or teach it to do.
For example I recently finished watching master manipulator Derren Brown on the TV. If you’ve never heard of him I suggest you watch some of his shows. You can probably access them online on YouTube or buy his DVDs.
Brown is a hypnotist, illusionist, mind controller, psychologist — sorcerer. It’s astonishing what he can convince people to do and how to behave. His most recent show is ‘Miracle’ where he ‘proves’ that the tricks and trappings of the Evangelical religious world are exactly that; tricks and trappings.
He dispels the ‘miracles’ of evangelists by performing those acts himself. And I might add, he’s an outspoken atheist.
Every time I see Brown perform I always come away with one significant point. The human mind is incredibly powerful. We are the most complex, wonderful and powerful creatures on earth. Nothing else comes close. No technology, no machine can get near the sophistication and complexity of humans.
The human mind often convinces itself that things are bad. That might be a phantom pain in the body. It might be the stress, and the weight of the world that appear to be solely on your shoulders.
But with the right mindset, anything is possible. That might sound a bit airy-fairy. But once you see what Brown can achieve with people and their own mind, it makes you think that you can do anything.
Control what you can control.
That’s something I’ve always said about life. It’s particularly important about investing too. You cannot control what you cannot control. So why worry about it? Do what you can do, and with the right mindset, the right ‘personal story’, you can do anything at any time, regardless of what’s going on around you.
Of course the media doesn’t help achieve this right mindset. They pepper us with negativity at every corner. It might be Russia bombing the life out of Aleppo. Perhaps the dire situation of Trump or Clinton as President. Or of course there are the falling markets, the impending doom, and the next great crash.
Just look at the 30-day price of gold. From around US$1,340 on 26 September the price plummeted to under US$1,260 in just over a week. That’s 6.4% loss in a week. Not exactly a crash, but a short sharp fall.
If you listen to the mainstream though, they’d convince you otherwise.
Deutsche Bank Strategist Says the Gold Crash Is Just Getting Started’
Gold plunges the most in three years’
Australian Financial Review
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Or then there’s the dire situation of the British Pound. In the last 30 days the pound has lost almost 10% versus the USD. And the bulk of that since September 26.
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Again, the mainstream would have you believe its game over.
The pound crashes again — and this is who’s getting rich’
‘The crash in the pound punctures the delusion that Brexit Britain will flourish’
But is it all really that bad? Or are you simply sold the narrative that it’s that bad? Or, are you convincing yourself it’s all bad?
Maybe it is bad for you, but it need not be. Chances are if it’s that bad for you and your finances, then you’ve convinced yourself that’s just your bad luck. Or convinced yourself that it’s the market’s fault.
It’s none of those. There’s no such thing as luck anyway. And blaming the markets is blaming something you can’t control. Remember, there are always two sides to any trade in the investment world.
While you might be convinced you’re on the bad side, someone else has the right mindset and is on the good side of the trade. Yes the pound might be 10% weaker in a month. But the USD is 10% stronger against the pound.
So why didn’t you go long the dollar? With the right mindset, and knowing where to put your money, you can win in any market conditions.
The price of gold might have fallen off a short cliff. Down 6.4% in a matter of a couple of weeks. But I’ll tell you something that hasn’t. In fact I’ll show you something that’s risen over 5.5% in the last 30 days — again most of that since 26 September.
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The price of bitcoin is touching US$639. That doesn’t look depressing, or like a crash, to me. In fact that looks exactly like the kind of place you’d want to have your money.
The past is no predictor of the future,
but it doesn’t hurt to look
If you think the short term performance of bitcoin is pretty good, then I’m here to say that’s just the beginning of it.
Let’s rewind the clock back to 2013. What a turbulent year that was! Remember the US debt-ceiling crisis? You know, when it looked like the US was not going to have enough money to continue to run the government?
Early in the year ratings agency Fitch said they’d review the US AAA rating. They didn’t like the idea of a higher ceiling. Obama said without it the government would default and wouldn’t be able to keep running.
This dilemma continued on throughout the entirety of 2013. Elsewhere in the world Greece and Cyprus were going through their own economic crises. In fact it looked like much of the world was in economic crisis. You could argue that in 2013 the world was much closer to the brink of economic collapse than it is today.
This would have been a perfect time to let that negative mindset sink in. After all, the price of gold fell around 25% in 2013. But what happened to the price of bitcoin when the US Fed looked like collapsing?
On 14 January 2013 bitcoin was worth US$14.30. By 30 November 2013 it was worth US$1,124.76. That’s a 7,765% return. It’s clear that it was the single best performing ‘asset’ in 2013.
When the world is on the brink of financial collapse, it’s not gold, not currency, not even stocks that really flys. It’s bitcoin. If the system shuts down, if there is financial calamity, bitcoin could soar — and even repeat the incredible gains from 2013.
If the world finds itself in another ‘2013’, bitcoin could soar from US$639 now to $49,618, another 7,765% return. I wouldn’t be surprised to see it top US$50,000 for just one single bitcoin.
Of course, for bitcoin to see another 7,765% gain there would need to be even more serious financial calamity. But that’s actually not that far–fetched, is it? And if that does happen and the ‘proverbial’ hits the fan, will it be all that bad? Well no, of course it won’t. Not if you’ve tucked away a bitcoin or two.