According to investing expert Paul Mampilly, investors need to look at what is happening in the world in order to be able to make sound investing decisions. The fact is that there are many things that affect the stock market. Things that are happening in the political sphere, for example, can have a major impact on the financial markets. For example, if two countries are becoming hostile towards each other, then the stock prices of companies that have contracts with the militaries of one of those countries will probably go up.
— Paul Mampilly (@Paul_M_Guru) November 2, 2017
You also need to look out for trends. If there is a trend, then you should invest in companies that are taking advantage of that trend. For example, Blue Apron is a company that came up with an innovative product. The result was that the prices of their stocks went up dramatically.
You should also look out for market disruptions. A market disruption is an introduction of a certain product into an existing market that shakes up the market. There are many great examples of disruptions in the markets. For example, the introduction of the automobile was a disruption. It disrupted the traveling industry. It changed the way people traveled. Rail cars and the companies that produced the material for them went on a downhill slide.
The iPhone is a classic example of a market disruption. It changed the way people live. People can now be connected to the internet wherever they are, simply because of a phone in their hand. This was impossible not long ago. Investing in the iPhone right at the beginning would have brought you great returns. Market disruptions are not bad for the economy. On the contrary, although they may disrupt a certain market, they end up benefiting everyone in the long run. The iPhone, for example, may have impacted the flip phone companies in a negative way. However, it led to a whole new industry. People can now create apps and music for iTunes and so on. In addition, it made life easier for so many people. Businesses can now sell on the internet, and anyone with a phone can buy from them.
Paul Mampilly is the founder of Profits Unlimited at Banyan Hill Publishing. He shares his decades of experience in investing with his hungry readers.
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