Mike’s Moments - November 2024 Edition

?? New Edition of Mike’s Moments is Here! ??

What a month, October was all about connecting with inspiring people and building networks that support growth. October was also Black History Month, which was about reclaiming narratives, focusing on recognising and correcting the stories of Black history and culture. This resonated with me, as I started to learn more about my family, my history, and myself. In this edition, I’ll share my experience attending the Ghana Networking Event, the Black Tech Fest, and the UK Black Business Show, along with key takeaways on the importance of surrounding yourself with the right people. And tune in to the gems I handed out in the Savvy Wallet Podcast! Additionally, I’ll update you on recent stock market performance and tech news from companies like Accenture and Meta.

Lesson of the Month: Finding Your Tribe

What is a tribe? Not ‘A Tribe Called Quest’, great group, Electric Relaxation is one of my favourites, highly recommend it.? But a?tribe is a group of people who share a common culture, language, and ancestry and often live in their own enclosed society.?

This month reminded me of the importance of building a community around you and with people who share your goals and aspirations. Connecting with the right people can open doors, provide support, and spark ideas that propel you forward. Surrounding yourself with like-minded individuals is a key strategy for both personal and financial success.

Although I have clients in different areas, I like working with people in tech firms because they are ambitious, highly driven, and fun to be around. They don’t take themselves too seriously (unless you’re a software engineer working 100 hours a week, lol, I’m joking, I love you all). But most of them are always open to learning more and development. These are the traits that resonate with me and how I operate with my life and my work. This is a tribe I can be around and get to know.?

Highlights from October Events

1. Ghana Networking Evening

I attended the Ghana Networking Evening in London, where I met a diverse group of professionals all united by our shared heritage and goals. It was a fantastic opportunity to strengthen connections, exchange ideas, and learn from others who are navigating similar paths. Being part of this community reinforced the idea that we grow faster when we support each other. I’ve recently started to learn about my heritage, raised in east London, by two parents from the Okere district in the east region of Ghana. Learning more about my heritage has helped me to understand more about who I am. Did you know that Ghana translates to ‘Warrior King’? You learn something new every day!

The highlight of the night was the adopted Ghanaian, @TJ Atkinson, who provided some realistic gems on how to help build a property portfolio of over 20 homes for generational wealth, including a property for his Niece, His Niece. You had to be there to get it, but if you missed it, go check him out.?

2. Black Tech Fest

At the Black Tech Fest, I was inspired by Rapman’s talk about his journey and his new Netflix show, Supacell. Spoiler Alert: You should not be waiting to read this only to get disappointed. I’m about to spoil the story, you should have watched it already or…..(hey, this is your opportunity to go watch it and come back btw).? But the main character, Michael (Obviously, lol) finds out he has superpowers and discovers others that also have powers, each tied to a history of sickle cell disease. Finding each other made them stronger. Hearing about Rapman’s challenges and successes in creating this show was a powerful reminder of the importance of resilience and the value of telling our own stories. Rapman’s journey highlights the power of representation and connecting with others who share your vision.

Side Note: Also, a big shout out to @andyayim and @richardcumming for their talk on building a diverse portfolio as an Angel Investor.???

3. UK Black Business Show

I also attended the UK Black Business Show, where I had the chance to meet other Black professionals and entrepreneurs. The event was an excellent space at the Excel Centre to network, discuss business challenges, and explore potential collaborations. Building a strong community of support is vital to overcoming obstacles and achieving long-term success. One key thing I think is clear that I started to think more about from the finance session with a fellow financial adviser @eman. If you want generational wealth, you have to first make sure you have wealth, and if you want wealth, you better have a plan in place.?

4. Savvy Wallet: The Truth about Getting Rich in the UK and Building Wealth?

What a month,? When I said having the right people around you, the icing on the cake for me was speaking with Ato on the Savvy Wallet Podcast. Had a great time talking about the importance of investing, especially in yourself, as well as planning for the long term. Check the link to see if you can still build wealth in the UK. (https://youtu.be/pUdV30cJjHA?si=nAtlpZd0miNKJIE_)?

Rational vs. Irrational Investing: Thinking About Your "Why"

When it comes to building wealth, understanding why you're investing—or trading—can be one of the most impactful decisions you make. Here’s how to distinguish between the two approaches and why keeping a clear purpose is essential.

1. Investing vs. Trading Investing involves buying assets with the intention of holding them long-term, allowing time for appreciation or compounding returns. It requires patience and a focus on growth over years or even decades. In contrast, trading involves frequent buying and selling to capitalize on short-term market fluctuations. Traders aim to make quick gains, often on a daily or weekly basis, which involves higher risk and volatility.
2. Rational Investing Rational investing is driven by informed; objective decision-making aligned with your financial goals. This approach requires understanding the fundamentals of the assets you’re buying and how they fit into your long-term plans. A rational investor sticks to a strategy adjusts based on sound analysis, and avoids impulsive reactions to market swings.
3. Irrational Investing Irrational investing, on the other hand, can lead to emotional decisions influenced by fear, greed, or market trends. This may lead to frequent trading without a long-term strategy or chasing high-risk “hot” investments without a solid understanding of the potential outcomes.

Why Your “Why” Matters

Investing without purpose often leads to irrational decisions and inconsistent results. Defining your “why” ensures you stay focused on your long-term goals, whether that’s building wealth for retirement, funding a major life goal, or preserving capital. A clear purpose helps you stick to a plan, choose the right approach (investing or trading), and maintain rational decision-making over time. Find your ‘why’.?

Stock Market Update – October 2024: Global Market Insights

October brought continued market fluctuations. Let’s look at the performance of key indices:

1. MSCI World Index Price: 2,900.18 Year-on-Year Performance: +10.2% Month-on-Month Performance: +1.3% The MSCI World Index saw a modest rise, driven by strength in healthcare and technology sectors.
2. S&P 500 (USA) Price: 4,521.78 Year-on-Year Performance: +7.9% Month-on-Month Performance: +1.1% U.S. markets bounced back slightly in October, with tech companies leading the growth.
3. FTSE 100 (UK) Price: 7,300.57 Year-on-Year Performance: -2.5% Month-on-Month Performance: +0.4% The FTSE 100 saw a slight increase, aided by positive performance in the energy and materials sectors.
4. Nikkei 225 (Japan) Price: 32,512.46 Year-on-Year Performance: +24.1% Month-on-Month Performance: +0.3% Japan’s Nikkei 225 maintained its growth, driven by the tech sector’s strong results.
5. Shanghai Composite (China) Price: 3,499.40 Year-on-Year Performance: +4.88% Month-on-Month Performance: +4.88% The Shanghai Composite gained momentum in October following a stimulus package from the Chinese government aimed at boosting key sectors like housing and finance. Measures included interest rate cuts, increased liquidity for banks, and incentives for homebuyers. These reforms have reignited optimism, with markets responding positively despite broader economic challenges
6. MSCI Emerging Markets Index Price: 1,050.12 Year-on-Year Performance: +2.1% Month-on-Month Performance: +1.4% Emerging markets showed modest growth in October, with regions like Latin America and parts of Asia benefiting from improved commodity prices and stabilization in foreign direct investments. However, continued volatility in China and geopolitical uncertainties tempered broader gains.

Tech Industry Highlights: Key News for October 2024

1. Accenture’s AI-Led Performance Accenture’s research indicates that companies with AI-driven processes are seeing 2.5 times higher revenue growth. The study found that 74% of companies’ investments in generative AI met or exceeded expectations, and most plan to expand their AI initiatives over the coming years

2. Meta’s New VR Tools Meta introduced new VR productivity tools as part of its ongoing push to create the metaverse, aiming to boost adoption in business settings. The tools are designed to improve collaboration and user experience, signalling Meta’s continued focus on immersive technologies.

3. Lenovo’s Hybrid Work Innovations Lenovo announced new products focused on hybrid work, including devices that blend office and home functionality. The company is tapping into the hybrid work model by providing tools for better flexibility and productivity

4. Dropbox’s Cost-Cutting Measures Dropbox implemented job cuts in response to shifting business needs and a focus on AI development. The company’s pivot aligns with broader trends of tech companies adjusting strategies in response to economic pressures and AI advancements

Final Thoughts: Finding Your Tribe

This month’s experiences reminded me of the importance of connecting with the right people and finding your "why" in investing. As The Psychology of Money puts it, "Important financial decisions are not made in spreadsheets or textbooks; they are made at the dinner table. They often aren't made to maximize returns but to minimize disappointing a spouse or child." For most of us, investing is deeply personal. We care about the why even if we haven’t fully identified it yet. If you're unsure of your why, maybe send me a message if you need help!

Until next time, Mike Your Financial Tech Planner Same Mike time, same Mike channel.

Stay Connected – Follow me on LinkedIn for more insights and updates, and check out my website for in-depth articles on financial planning for tech professionals.

What Next?

Looking to take your financial planning to the next level? Here are a few ways you can get started:

• Book a time in my diary to discuss your financial goals: Click here to schedule a meeting.
• Download my free e-book on financial planning for tech professionals: Get your copy here
• Are you Maximising your Income? Take an online financial assessment to see how you’re doing: Start your Assessment here.

References:

1. Savvy Wallet Podcast: https://youtu.be/pUdV30cJjHA?si=nAtlpZd0miNKJIE_

2. Accenture’s Newsroom: News on AI performance, Accenture