Traders VS Investors

While preparing for work today, I was watching Squawk Box on CNBC. I believe that Squawk Box is one if not the longest running morning business news program and its claim to fame is bringing Wall Street to Main Street, through various commentators and analysts. This morning while talking about the Market moves yesterday, reviewing the earnings releases from the post-market close on yesterday and discussing pre-market news and earnings releases, they had a segment where they interviewed a seasoned market analyst.

During the interview with the analyst, they discussed various topics including the projected length of the recession, the current market rally, historical implications...etc. I was listening, but I was not totally focused on the discussion until the Senior Market Analyst made this statement, “The problem with the market today is that there are too many traders and not enough investors. The traders are driving this market while the Big Money is on the sideline.” He pointed out that the market will stabilize once the Big Money (The Investors) re-enter the market. He later explained that Investors are in it for the long-term. They see the long-term value of the investments, while traders are here today and gone tomorrow. He further detailed that Investors know the true value of the investment vehicles and are more influential in determining the true value of the market asset.

This dialogue led me to take a look at my life. I began to think of my life as a stock and the people that I have met to be either “Investors” or “Traders”. The traders have sought to benefit from me in the short-term. They saw me as an opportunity to further their own objectives and use me to get what they wanted. They were here one day and gone the next….never really taking time to appreciate my value. On the flip side I have had “Investors”. “Investors” are those who saw my potential and invested their resources (time, money, love, etc.) to help me to reach my long-term goals. Investors believe that their success in the long-term is connected to my success long-term. They partner with me. Investors “hold” on to me when I’m up and when I’m down in the short-term, knowing that in the long run, their investment in me will pay off and my “market value” will be much more than it was when they first “invested” in me.

My “Investors” are my true, through thick and thin, up and down, good or bad, rich or poor, sho-nuff friends.

Proverbs 17:17 says: A friend loves at all times, and is born, as is a brother, for adversity.

Too often as it is in the business world today, we focus our attention on what the “traders” are doing. We waste time trying to please those who will in reality just stay around for the short-term. If that is your focus, make today the day that you shift your focus to the long-term. A true friend (investor) is going to love us at all times, while traders will flee at just the suggestion of adversity.

With each relationship in your life ask yourself is the person on the other end of this relationship an “Investor” in my success or a “trader” looking to make a quick “profit”? I believe that this mindset is essential to making good life decisions and in setting priorities.

God is your #1 investor (friend) and has a vested interest in your success. He is always there and will continue to “hold you when others have “sold” you and moved on.

We should also be determined to be “Investors” in the lives of others. There are great “stocks” out there that are “undervalued” and “oversold” but have great potential and value. It is time for the “Investors” to get off of the sidelines and to turn this “market” around.

Now is the time to invest.

Be Blessed,
B