Game of Thrones and the Stock Market

Game of Thrones Camtrading Cersei Season 7
How did your investments do this week?

I suppose the better question is – Did you see the new Season 7 Trailer of Game of Thrones?!?

I thought I’d change it up a bit this week rather than talk about the markets and Camtrading’s performance.

If you didn’t know I was a fan of the show, now you know.

It feels like it’s been a long time since Season 6 ended with Jon taking back Winterfell and Cersei blowing up the Sept. Last season ended on such a high note.

As I’m looking back and thinking about what else happened in the finale last year, I want to highlight a few things before I dive into what the new trailer reveals.

  1. King Tommen jumped to his death after he saw the Sept blow up.
  2. Arya showed off her baking skills to Walder Frey before she finally got her revenge to kill him off.
  3. Varys was seen talking to Lady Olenna in Dorne to join Daenerys’s army.
  4. The big (expected) reveal of Jon Snow’s Targaryen roots. “King of the North!”
  5. Jamie and Bronn arrived at King’s Landing just in time to witness Cersei sit on the Iron Throne.
  6. Daenerys set sail for Westeros with her massive army.

Who’s excited about the new season? If you haven’t seen the trailer, here it is!

Let’s break it down. We see Jon walking the halls of Winterfell. Then, we see Daenerys walking the halls somewhere. Then cuts to Cersei walking the halls of King’s Landing. We see the doors open and they’re headed to their own respective thrones.

They take their seats. The camera zooms in on their faces, each closing their eyes, and fades to black… Cersei exhales (as did I when I was watching), and we see her breath! It’s cold! We hear the cold wind as the camera zooms out. Only to see the frozen, dead eyes of the Night King!

Who’s excited? Me!

Where is Daenerys? Dragonstone. That’s where she was headed at the end of last season and the trailer shows that she’s taken her throne on Dragonstone.

Awesome.

Game of Thrones and the markets?

How could a TV show like Game of Thrones possibly be related to the stock market and investing?

To be honest, when I started writing this week’s recap, I didn’t think I would talk about Game of Thrones. I thought I could talk about what happened this week in the news, but as far as the market goes, not much really happened. The week was fairly uneventful. So I looked elsewhere to see what I could write about and came across the Season 7 trailer of #GoT.

Now that I’m actually thinking about a connection of the show to the stock market, I’m actually surprised to identify three main themes that actually relate to the show and the market.

Winter is Coming

“Thousands of years ago, there came a night that lasted a generation. Kings froze to death in their castles, same as the shepherds in their huts; and women smothered their babies rather than see them starve, and wept, and felt the tears freeze on their cheeks… In that darkness, the White Walkers came for the first time. They swept through cities and kingdoms, riding their dead horses, hunting with their packs of pale spiders big as hounds.”Old Nan to Bran Stark

The first connection is the inevitable coming of the White Walkers in Game of Thrones. From the very first scene of the show, we were told that Winter is Coming. But what did that really mean? What does it look like? As we progressed in the show, we eventually figured out that it’s the White Walkers. That eventually they will make their way south of the wall and all of Westeros would perish.

For the market, a similar scenario would be like The Great Depression. Not to be confused with The Great Recession of 2008.  I’m talking about the Great Depression that lasted from 1929 – 1941. The stock market crashed in 1929 which caused a ripple effect in the US. Businesses shut down, jobs were lost. Unemployment peaked at 25% in 1933. For those who did have jobs, their wages were cut. And to make matters worse, there was a Dust Bowl that ripped through the farm lands causing drought and erosion. It was a dark time in U.S. history.

The Diversified Houses of Westeros

The second connection would be the Houses of Westeros. Now that we know that the White Walkers are coming, a single house would be unmatched against the White Walkers. The only way to defeat them would be for all of the houses of Westeros to join forces.

The market equivalent would be a diversified portfolio that consists of bonds, stocks, money markets, gold, commodities, and possibly real estate to overcome a bear market. Like Game of Thrones, you don’t need every house to fight and defeat the White Walkers, but you do need a strong leader to lead each house and the entire army. For your portfolio, you need to understand that some assets perform worse than others in a bear market so you don’t need to own every asset. Defensive stocks, gold, bonds, and money market are enough to protect you from a bear market.

Having a dragon would definitely help against the White Walkers. What’s the equivalent of a dragon in the market? Warren Buffet. He’s made billions in the market and continues to be in the top 3 of the richest people on earth every year. I’d follow him during a recession. 🙂

This show isn’t going to watch itself

The last connection is us – the fans. I’ll admit, I didn’t read the book. I didn’t know what happens to the noble Eddard Stark until that punk Joffrey ordered Ser Ilyn Payne to cut his head off. As fans of the show, we connect with the characters. We root for the good guys and console one another when our beloved characters meet their fate (R.I.P. Hodor). We also rejoice when our most hated characters die off – i.e. when Joffrey gets poisoned and when Sansa gets her revenge on Ramsay Bolton and he is fed to his own dogs. There are so many to name. This show takes me on an emotional roller coaster and I love it.

At times, I feel the same emotions in the market. I love investing, following the market, and making money. Losing money isn’t very fun, but it is part of the game when you invest in the market. In order to make money in the market, you have to take risks. You have to understand how the market works, and what your risk tolerance is when investing in different assets.

“When you play the Game of Thrones, you win or you die. There is no middle ground.” – Cersei Lannister.

Game of Thrones is the best show because of the great storytelling by the showrunners and the author. They make the characters come to life. We fall in love with these characters so we research backstories, learn about them and keep us looking forward to seeing what happens next. It continues to be the best show because we watch it. Millions like us. If we stopped watching it, the show would have died when Ned died and we wouldn’t have experienced the satisfaction of knowing who Jon Snow’s parents are. The King of the North!

When we invest for our future, we are the storytellers and the fans. If you’re like me, you will experience highs and lows. To me, the point of investing is to harness the power of compound interest and my goal is to invest for the long haul. You want to see your investments grow and have your money work harder for you so you don’t have to work until you die. Be smart with your money. Learn about what investments you like and don’t like. Even if you get burned a few times, continue to invest because when you have enough money in retirement, you will want to look forward to seeing what happens next.

Thanks for reading. As always, if you want to know more, let me know in the comments or Facebook.

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