Why the Future of Investing will Look Very Different (For Younger Dentists)

The “Golden Age” Of Traditional Stock Market Investing is Over.

If you invested in the mid 1950s… during the “golden age” of the markets, you’re probably wealthy. Plugging your savings into a market index fund after WW2 and letting the market run its course would have been a sufficient retirement strategy 70 years ago.

But what about today?    

Today, markets are at all-time highs, controlled by supercomputers and software algorithms.

Flashy new investment products are hitting the market every week.  Apps and tech startups are taking “investing” to the uneducated, financially illiterate masses.  It’s changing the game.

Here’s a key investing principle:

Successful investment returns are created by market inefficiencies. If you buy an asset (like a stock, or real estate) when it is undervalued, and sell it when it is properly valued (or overvalued), you’ll make a profit.

The problem is that Wall Street has become so systematized, regulated and shrouded behind the algorithms of supercomputers, that there is very little inefficiency for the average investor to exploit.

You merely put your money in the pool and hope for the best.

Wall Street has become a very efficient marketplace. What does this mean for the future of traditional investing?

It means a plateau in returns.

In the worlds of Jack Bogle (founder of Vanguard):

“By decade’s end… I expect an annual rate of return of 4% for the U.S. Stock Market.”

That’s not an inspiring possibility. 4% barely outpaces inflation.

Bottom line… the “Plug-And-Play” market strategies of the 1900s aren’t going to yield the results they used to.  Many “consumer” investors are still working with decades-old assumptions and strategies.

Today… Successful investors are leaving the consumer driven investing marketplace in droves, opting instead for investments in inefficient markets (like real estate) that offer more control.

The future of wealth-building will belong to those that have the network and connections to access true market inefficiencies.

That’s why I truly believe that your network is your net worth.

What about you?

 

-David

P.S. – My team is putting the finishing touches on a really exciting project.

It’s for dentists that are committed to adapting to the new era of investing and wealth-building, but still getting some fundamentals squared away first (like growing a new practice, paying off student debt, etc). Want to be the first to know about it? Click Here.

  • Dr. David Phelps's Best-Selling Guide For Dentists:
    “From High Income
    To High Net Worth”
    “The ultimate guide for anyone who desires to build cashflow and net worth through real estate investment without ever meeting a tenant or fixing a toilet.” - John Groom, CPA
    amazon kindle book by dr phelps amazon paperback book by dr phelps free chapters of high income to high net worth book
    high net worth for dentists book dr david phelps
  • Dr. David Phelps's Best-Selling Guide For Dentists:
    The Ultimate
    Freedom Prescription
    Secrets from 14 Doctors... How They Created Generational Wealth in Fewer Than 5 Years
    amazon paperback book by dr david phelps
    the ultimate freedom prescription book dr david phelps
The Greatest Risk In Life
Is The Risk Of Doing Nothing At All

Your Financial Freedom is Only 5-7 Years Away!

contact freedom founders
freedom founders logo
Learn to live life on your own terms and accept nothing less.
freedom founders strategy session
© 2018 Freedom Founders
Designed by JimmyMarketing.com
freedom founders social media freedom founders youtube freedom founders facebook