Chris Linkas & Investment Strategies
Millennials don’t like to invest their money in stocks. And the people who are in the Generation Z category are not crazy about investing either. There are several reasons for their aversion to investing. The obvious reason is the enormous amount of student debt they carry and will carry for years to come. But Chris Linkas, the investment entrepreneur who has a successful track record as an investor as well as an investment entrepreneur, thinks there’s no time like the present to invest. Linkas has years of experience in the financial sector of the U.S. economy as well as the European Union’s economy (CheyneCapital). Mr. Linkas is not afraid to tell it like it is when it comes to giving young investors advice. He knows only 25 percent of the people under thirty invest in the stock market. Young people lived through the 2008 financial crisis and the dot-com crash as well as the housing bust, so they don’t trust the stock market or other investment vehicles.
But Chris Linkas likes to give his young clients a brief history of the stock market, so they realize investing in stocks is a long-term game. Chris thinks trying to find the next Amazon or trying to invest in a new tech startup is not the best way to save for retirement. Staying the course, as Chris Linkas likes to say, is the key factor in successful investing. But understanding and incorporating risk tolerance when investing doesn’t come naturally for some young investors. Old investors know stocks rise and fall like the ocean tide, so they have plenty of risk tolerance. A 60-year-old investor may have a portfolio that is 80 percent stocks and 40 percent bonds. But that investment distribution may not work for Generation Z investors, according to Mr. Linkas. Since most young investors have a low-risk tolerance, Chris Linkas gives them investment options that don’t carry as much risk.
When Chris is working with a group of young investors, the first thing he always tells them is time is on their side. They may invest in assets that fall apart early in their investment career, but they have time to recover from early losses. Linkas is also a proponent of ignoring what is going on in other investors lives. Some young investors want to take risks because they see their parents or grandparents taking big investment risks. Parents and grandparents have a strong pension fund, and they have assets they can convert to cash when they need it. Older investors are not the best financial advisors for young investors, according to Chris Linkas. Mr. Linkas also reminds young investors that people who have a long history of investing don’t look at the world the way young investors look at the world. The trials and challenges in the 21st century differ from the issues those investors faced when they were in their twenties and thirties. So it’s not always prudent to listen to the so-called experts.
But in order for young investors to invest successfully, they have to stay active and engaged in the art of investing. Chris calls investing an art because people create wealth by investing. And in a capitalistic economy wealth means power. Young people must follow the ups and downs that companies experience when they own stock. They also should follow the economic trends that constantly change due to global influence and political decisions. A good example of how quickly things change is the recent decision by the Trump administration to put tariffs on steel and aluminum. Stockholders who own stock in those industries know the risk factor increases when trade wars develop.
Rumors can destroy a young investors portfolio. Listening to rumors about big mergers and acquisitions isn’t prudent, according to Linkas. Mergers happen all the time. But there are more rumors than fact floating around the investment industry for several reasons. Some of those rumors are intentional acts that some companies use to increase or decrease their stock value. Other rumors are just hearsay, but there is enough energy behind them to make young investors as well as seasoned investors nervous.
There isn’t one investor manual for young investors that gives them the information they need to assess the risk of buying stocks or other assets. But Chris Linkas thinks young investors who invest slowly even when money is tight is the best way to prepare for the future life as a retiree (http://www.spoke.com/people/christopher-linkas-fortress-3e1429c09e597c1006eb4661). Reaching the golden years may seem like it’s a long journey, but it’s not. The Baby Boomers who thought investing was crazy when they were younger regret those thoughts now. Retirement can be a difficult experience if the only investment people make is paying into the social security system every month. In order to enjoy retirement, young investors have to tolerate investment risks, do investment research, and take a chance even when taking a chance means not buying that new car or a home.