A key characteristic about traditional investment markets is that they're relatively stable, these are matured markets that offer a safer and more guaranteed return than emerging markets.
What I like about these markets is that they're good for preserving wealth, given the relatively stability that they posses. There are hardly any big losses within a short period of time, and big gains for that matter too.
But of course, nowadays, even matured markets seem relatively unstable. There's a general disruption that's happening which is redefining established industries and shaking the foundations of once-impenetrable giants.
Take oil for example, is it merely experiencing a temporary tremor or is this the beginning of a tectonic shift? Could its fate serve as a cautionary tale for other seemingly invincible industries facing the winds of disruptive innovation?
In today's world, anyone with a smartphone can join the investment party.
This is thanks to new and easy to use investing platforms like Robin hood where "diamond hands" are more about holding onto one's investments than wearing fancy rings.
Although Amazon might seem unstoppable, old and big guy's like Walmart aren't fading into the background anytime soon.
A closer look will show us they've been adapting to the times, learning new moves, such as blending online stores with brick-and-mortar shops like a pro.
Perhaps, old dogs can learn new tricks and stay relevant amidst the disruption.
Emerging markets can best be pictured as a jungle, with a core ability of rapid and unchecked growth.
Much of Africa is considered an emerging market. Fintech platforms like M-Pesa in Kenya, for example, have leapfrogged traditional banks with their mobile payment platform, giving millions of people access to financial services.
These nimble and agile players are not only rewriting the rules of the game. Because at the heart of it, they're solving real world problems with innovative solutions, which proves that innovation can be a real game-changer.
But we have to keep in mind that jungles are full of hidden dangers and wild swings. So, if you're hunting for diamonds in a jungle, you gotta be careful.
Do your research is just the starting point. You also have to understand the local scene and keep a cool head.
Essentially, disruption is happening everywhere, which means diamonds are everywhere. Although, it seems to be present more in the jungle.
So, how do we spot a real diamond in this crazy investment maelstrom?
Fundamentally, innovation and disruption are the prevalent themes.
This means looking for companies or projects that are solving problems with smart or innovative solutions.
Think groundbreaking tech, sustainable practices, or totally new ways of doing business.
At the same time, a winning concept is nothing if the executioner(s) isn't able enough to bring it to reality.
In simple terms, find leaders who can navigate change like a pro and have a good vision coupled with a solid plan for the future.
Lastly, it will be a great idea to drop stereotypes. Don't just think tech startups; a local farm revolutionizing sustainable agriculture could be a real diamond in the rough too.
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