New Paradigm
Categories: Financial Theory
The term “new paradigm” refers to what happens when something really, really big happens that changes the way we think and act. We’re talking revolutionary. Game-changing.
Think about what Amazon did for shopping, or what indoor plumbing did for the call of nature. Savvy investors are always on the lookout for the next new paradigm: if they can get in on the ground floor of something like Amazon, or, uh...toilets, something that’s going to change the world, then they could stand to make a shedload of money.
But let’s be real here: not every company that promises to change the world actually does it. We can’t just throw our investment money around based on some CEO’s say-so. And furthermore, we need to understand that, even if we buy stock and the value takes off like a rocket, it’s probably not going to continue on that trajectory forever. We need to be aware that it’ll probably drop back down and then (hopefully) level out or begin to climb again. As always, even though new paradigms are super exciting and potentially super profitable, we need to do our research before getting too financially invested.
