Yurek Vázquez made his own version of that phrase so common in cowboy and gangster movies: “The bag or the life.” His first experience on the stock market was devastating. He invested the $ 2,000 he had to pay the rent and lost it in a second.
“I knew how to push the button, but I didn’t know what was happening in front of me,” says this Cuban immigrant who has become an expert in the stock market and in business survival.
“I had to call the broker to close the transaction for me. “The number is the amount you won,” he told her. And what I saw was that he had lost everything, ”Vázquez recalls in an interview with the Nuevo Herald.
Vázquez believes that the stock market enjoys a bad reputation precisely because of people who invest without being informed, but investing is still the fastest way to generate wealth. That is why one of his objectives today is to equip Hispanics with the tools offered by the stock market so that their inclusion in the market economy is more effective.
“The stock market is not just for investors. When you normally talk about Wall Street, people think they are being invited to invest, but it is not just that. In the stock market are the answers we need for our small or medium business to succeed or get ahead, in the midst of a crisis such as COVID-19, ”he explains.
Vázquez came to the United States at the age of 14 and dropped out of high school to help his mother. His first job was at an auto repair shop in Hialeah where he arrived at 7 in the morning and didn’t leave until 9 at night. But he was very organized and a good entrepreneur, and he was climbing in Miami. He first founded a business to sell beepers, later an import and export company, and along the way of his career he had to save some other bankrupt company.
So the first misstep of the bag was not going to stop him. What conquered him about this was the potential in the transactions he made from his room in his house, Vázquez said, from his apartment in one of the luxury towers of downtown Miami.
It was precisely the understanding that education is essential to win in the stock market, and that the participation of Hispanics in it is very limited, which led him to found the Wall Street Business Academy, an online academy to teach how to invest in the stock market. stock market and at the same time use it to anticipate trends in the economy.
HISPANS AND THE STOCK EXCHANGE
As for the stock market, only 10 percent of the population in the United States controls 84 percent of wealth, according to Federal Reserve figures.
In the case of Hispanics in the United States, who represent the eighth largest economy in the world, only 30 percent participate in the stock market. This represents a great loss, considering also that in recent times many people have decided to invest the $ 1,200 of the stimulus check in the stock market.
Thus, small investors are believed to have driven the rally in the price of US stocks.
“When you take into account that a Hispanic launches a business and does not have access to the stock market, from the outset they are at a competitive disadvantage with those who are using it,” said Vázquez, indicating that Hispanics lack that free tool offered by the market from both an investment and information perspective.
The expert gives as an example that the behavior of the markets since 2006 began to predict that a contraction was coming. Then the crisis of 2008 occurred, and the businessmen who dominated that information were able to prepare and make more educated decisions to face it.
THE BEST TIME TO INVEST IN THE STOCK EXCHANGE
Vázquez is of the theory that “there is no bad economy because you win when the market falls and when it rises”, that is why this moment is as good as any to start investing.
“In the first quarter of 2020, as the Dow Jones made headlines by plummeting in the face of the pandemic, Goldman Sachs reversed lower and earned $ 8.74 trillion, Citi made $ 1.2 trillion and Bill Ackman $ 2 trillion. With or without chaos, you can win, ”he exemplified.
Vázquez does not believe that there is a disconnect between the behavior of the stock market, which has recovered from almost all the losses suffered during the pandemic, and the economic crisis and unemployment.
In times of crisis, investors often buy government bonds to secure their investment and get some return, he explained. This time the Federal Reserve has had a different attitude and has bought shares of private companies.
“The Federal Reserve, by bailing out these companies, bails out employees, saves jobs, and this has an effect on the economy. So the growth of the stock market has been the reaction to the wise move of the Federal Reserve ”, he emphasized.
WHAT ARE THE BEST COMPANIES TO INVEST
Vázquez recommends diversifying capital, starting small, and generally investing in companies when they are in their early stages, so that the investment is smaller and when growth occurs, thus obtaining a greater return:
▪ the medical marijuana industry, which is still very young and has not yet been exploited.
▪ technology, renewable and alternative energy companies.
▪ companies related to water, land and food.
“90 percent of my investments are buying and selling currencies from other countries and cryptocurrencies, but there is 10 percent that I reserve for these industries in the long term,” he said.
He also pointed out that although many now speak of investing in pharmaceutical companies because of the prominence they have taken, in reality they have established investors.
Vázquez has mixed feelings about investing in real estate, because although the state of the markets and the incentive of low interest rates favor this industry, there are many aspects that could cause a decline.
He points out that never in the history of the world economy has the Gross Domestic Product of countries stopped, and the consequences of this situation are not yet calculated because governments have been proactive and injected capital.
What will happen when the millions who are unemployed cannot pay the mortgage ?, he warns.
Plus, there are 70 million aging baby boomers who own 30 million properties, he says. If your heirs decide to sell them, then there will be a surplus in the market that will add to possible foreclosures. The homes could lose value and whoever buys them to invest would incur a debt that must later be paid, causing loss.
“We must be judicious in what we are seeing in the market. If you are going to live in the house, it is a good idea to buy, but if you buy it as an investment, you must do it in the long term or wait to obtain a better price ”, he concluded.