Should investors be concerned about the state of the stock market?



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A month ago, on January 6, protesters stormed the United States Capitol. Many investors feared a dramatic effect on the stock market, but it remained stable. Shortly after the Capitol raid, a further disturbance occurred as the GameStop (NYSE: GME) short squeeze – initiated by Reddit thread WallStreetBets – has started.

Investors can be more confused and anxious than ever, some wondering about the future of the stock market. Here in video recorded on January 6 Foolish analyst Tim Beyers reminds investors that capitalism and the stock market have survived the test of time, and that investment activity continues.

Tim Beyers: Let’s get into the news here, and I want to address this because it’s not partisan, it’s not politics, I’m quoting our producer Mac Greer here on this one. But protesters stormed the Capitol in the United States.

If you are not in the United States you might not know what this means, but we have a Capitol building where the United States House and Senate do their business today, regarding the elections. American. The US elections were held in early November and the final votes in that presidential election had to be certified by what we call the Electoral College here in the United States.

It’s not civic education, so we won’t go into detail. It’s not a political show either, so we’re not going to make a political statement about it, but it’s scary. I’ve never seen this before. This has never happened before, where one side of the political divide is so angry and so virulent that people have taken to the streets and foamed themselves so much, whatever you want to say, they literally took it. assault the United States Capitol. . This has never happened before.

So, especially for those of you who are from other parts of the world, you might be looking at us here in the United States and wondering, “What’s going on?” I want to validate that this can sound pretty scary. If you are an investor, you might be asking yourself, “What is this going to do? Is capitalism safe? I just wanted to validate first what you are feeling – whether it is fear, anger, frustration – know that you are not alone, it is valid.

But, I want to give you a little historical perspective here. Political protest has existed for a long time here in the United States. We don’t know the details, and since we’re not a political show, we won’t go into the details. But what we know historically is that capitalism has survived, and the stock market has survived hundreds of years of turmoil. Investing in amazing companies is as efficient as ever.

What a time for us guys to talk about state of mind. It’s specifically at times like this, and I’m just going to say it for myself here without projecting onto anyone else. My first reaction to this was anger, frustration, unsteady, angry. And then I have to step back and say, but the investment business continues. The investment continues, I know it’s true. I know the quality companies I own continue to be exceptional quality companies, and that has not changed.



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