"You know, the stock market is controlled by only four people," a guy said to me as I waited for my next flight.
I was headed to a conference in Las Vegas. I'd sat down next to this new "friend" during my layover. We had started chatting and quickly found we were both interested in finance.
Now, if you travel much, you know how layovers go. They can be brutally long... or so short you have to race to make your connecting flight... or just downright weird.
This part of the conversation was about the point when I realized mine was moving into the "weird" category.
I didn't know how to respond to the guy. So I just smiled and nodded. But in my head, I was thinking, "You've got to be kidding me."
I had an hour until my next flight, so I decided to humor him. Maybe his yarn-spinning would reveal some deep truth...
What I learned is that this poor guy had been fooled in a big way. It doesn't have to happen to you though, as I'll explain today...
"These guys are the only ones with enough power to make the markets move," he told me. "And they have the money to back it up."
OK... I guessed he was thinking of the Jeff Bezoses of the world? I still wasn't sure...
"Their power and money gets them information that others can't access. And they make money hand over fist while others lose a bunch of money."
I started to see where he was going. He continued before I could get a word in...
"Individual investors stand no chance with these guys making all the moves. They're the only ones who will ever make money."
That's when it all made sense. The poor guy had likely had a bad experience where he lost a lot of money in the market. And as a result, he was convinced the little guy didn't stand a chance.
That idea wasn't nearly as crazy as his opening sentence. I could understand how he got there. This guy felt like he'd been robbed by the market in some way. So he pinned it on four insiders with enough power and money to dictate market moves.
He had lost all hope as an individual investor. But if you're reading this today, I have an important message for you...
He's wrong. And you don't have to fall into this trap.
Now, I know there are investors out there who are smarter than me, or better-connected than me. But I don't need to be the smartest guy in the room to make money in the markets.
You can make money as the "little guy" on Wall Street.
You just have to know one thing – something that gets at the heart of what drives the markets every day.
I think of it as the "DNA test." It's what makes the market work like it does. And once you understand it, you can exploit it to your benefit.
Using this DNA test is the best way I know for the average investor to get ahead. Tomorrow, I'll share how it works... and what it's saying about the stock market today.
Good investing,
Steve
Further Reading
Don't give in to the idea that only the rich can make money. It isn't easy, but the truth is that you only need two simple things to grow your wealth. Read Steve's full essay right here: The Biggest Lie: 'It Takes Money to Make Money.'
"A lot of people – even some smart ones – believe that trying to time the market is a fool's errand," Porter Stansberry writes. However, he argues that it's not only possible, but that you should do it. Check out this essay on how it could help you outperform right here: Don't Be a Fool – You Can Beat the Market.
Just like the market's "DNA test," each industry has a key metric that you need to understand before you consider investing...
HIGHS AND LOWS
NEW HIGHS OF NOTE LAST WEEK
Apple (AAPL)... iconic tech giant
Alphabet (GOOGL)... "World Dominator"
Microsoft (MSFT)... tech giant
Nvidia (NVDA)... chipmaker
Qualcomm (QCOM)... semiconductors
Amazon (AMZN)... online-retail king
JD.com (JD)... "China's Amazon"
Alibaba (BABA)... Chinese e-commerce platform
Sea Limited (SE)... e-commerce and gaming
Intuit (INTU)... tax-prep software
Facebook (FB)... social media giant
Dollar General (DG)... discount retailer
Home Depot (HD)... home improvement
Deere (DE)... heavy machinery
Pool Corp (POOL)... swimming pools
Cintas (CTAS)... uniform supplier
Rollins (ROL)... pest control
NEW LOWS OF NOTE LAST WEEK
Not many... It's a bull market, you know!