Small Investors Can Make Passive Income Too
In late February 2022, we all saw the headlines about Russia invading Ukraine. As the news rolled out, investor sentiment plummeted, and the stock and crypto markets tumbled. In response, I wrote two articles on how to manage personal finances during wartime.
Stock and Crypto Markets Tumble as Russia Invades Ukraine
7 Ways to Prepare Your Personal Finances for Wartime
In one of those articles, I shared a strategy for investing during times of peak fear. I also mentioned that wartime historically benefits select asset classes. I decided to apply some of my own insights and invest a small amount into stocks I thought would do well. Before I continue discussing how much money I made by taking advantage of war-related market fears, I must say that I much prefer a world where war does not exist. That there is no monetary benefit that can justify the cost to human life and spirit. This article is not an endorsement or justification for violence as a tool for political gain or profit. As a personal finance education writer, I choose to share candid perspectives on how the market works to potentially educate and inspire those who aspire to grow their wealth.
I used what I knew about the market impacts of war to increase my passive income.
-G. Wallace
Aware of the market trends, I took advantage of the financial opportunities that this grim geopolitical scenario presented. This is what I did step-by-step:
- As soon as the invasion news hit, I opened my trading portfolio (this is different from my long-term portfolio) to track the market reaction.
- I selected 5 high conviction stocks I felt were at a good value.
- I used $500 of cash I had on-hand (already in the brokerage account ready to use for opportunities such as these)
- I bought fractional shares of Tesla, NVIDIA, Disney, and three ETFs (VOO, VTI, and SPY). See details in the below screenshot for how much I spent on each stock.
In less than one month, my $528 investment grew by over $100. I did not do anything to make the stocks grow. I simply let the money hang out in the account. Since these are all stocks, I already own and have high conviction around, I’ll leave them in my portfolio, I don’t plan to sell.
Key Take-Aways:
- Buy when others are afraid
- Have money on hand ready to use when great opportunities present themselves
- Let your money work harder than you do.
Note: I’m not a financial advisor; I only write for educational/entertainment purposes. Nothing in this or any of my other articles constitutes financial or legal advice.
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Personal Finance, Stock, Crypto, and Entrepreneurship 