As Traders Find Profit in Global Growth

In a world where information is available as water from a well, investors can find new profit opportunities. Cross-border transactions, once considered a difficult and full-of-challenges task, are now possible thanks to reduced commissions on stock trades in the US, which have been reduced to zero. This change has allowed traders access to large amounts of data and information that were previously impossible to obtain. The improvement in access to information has been further enhanced by the advent of telematic deals in Milan in 1991, which stimulated competition and led to the reform of capital movements rules in Italy, making it easier to buy stocks. Here’s why today’s traders can operate at cost-free prices without having to sift through paper archives or microfilm to search for news and company reports. Not only this, but also ETFs (Exchange-Traded Funds) have allowed taking an exposure to the entire market: an evident benefit of capitalism progress. This happens because stocks allow exploiting the capitalist dynamism, while bonds do not allow accumulating wealth from day to day. One must think in a gradual and global perspective, considering long-term rather than short-term. Global growth has had a significant impact on stock performance. In 1970, the first 20 global market capitalization companies were compiled by AT&T and IBM. But in 1990, only 7 remained in the top 20. Today? None. They have all been replaced by new enterprises. This continuous turnover is a characteristic of capitalism. Stocks allow exploiting this dynamic, the 'gold' and 'bitcoin', while bonds do not allow accumulating wealth from day to day. However, investing in stocks does not mean being sure of profit. The Italian stock markets since 1969 have shown a rise of 64% of the years; the Eurozone lists and world stock exchanges have done the same in 74% and 77% of the years. This does not mean that there are no flexibilities, but it’s important to consider these statistics in a gradual and global context, thinking long-term rather than short-term. Investing in stocks can seem like a step back into the past, but this change has transformed the way profit is obtained. Stock transactions have become easier thanks to available information, stimulated competition with reforms, and ETFs offer exposure to the entire market. Here’s why today’s investors can find new profit opportunities, transforming traditional capitalistic strategies and dynamics into a new game of global strategies and dynamics. In conclusion, investing in stocks can be an effective way to obtain profit, but one must consider these changes in a gradual and global context, thinking long-term rather than short-term. It is not necessary to predict future Pil, avoid Borsa drops, or be efficient in selecting stocks. At the dawn of my career, 54 years ago, investors were faced with many obstacles. Information was scarce, and there was no internet. Reaching for data meant sifting through paper archives and microfilm to search for news and company reports. Until 1975, stock transaction commissions in the US were generally 2%. The wide spread money/letter – that is, the difference between the prices offered by buyers and those requested by sellers – eroded even further.