KEEPING IN TOUCH
Chasing returns never works. Almost nobody beats the market long term. The vast majority of financial experts don’t have a legal responsibility to serve your best interest. The truth is, those folks are out to make money, and you are the source of their income. Whether you make or lose money, the game is rigged, that they will make money regardless.
In the last sixteen years before the publishing of this newsletter, the stock market has crashed twice in the amount of 50% or more. Prior to that, in October of 1987, the black Monday crash dropped the value of the market in a single day by something more than 20%. That is the largest single day crash in US history. Exactly why would you want to have your money in a place that seems to have promise, but where such enormous danger exists? Recognize, that a 50% drop requires 100% return, just to bring your finances back to where they were before the drop. Some of the greatest experts in the country are predicting there are likely to be two major crashes in the next 10 years.
Are you willing to lose most of what you have in the next crash?
A Worthwhile Quote
There is a time in every man’s education when he arrives at the conviction that envy is ignorance: that imitation is suicide: that he must take himself for better or worse, as is his portion. —Ralph Waldo Emerson
We are all human beings. When we think positive, spend the time to learn and grow in wisdom, and do what is right for others, success is around the corner.
The world’s most accomplished individuals share these traits; a relentless focus on goals, plus the combination of burning desire, faith, and persistence to achieve them. It amazes me how quickly most people could progress if they would determine how best to handle their life and finances, and work toward that goal. This simple act is the first step toward financial success.
“Poker, like playing the market, is a zero sum gain. Only a small percentage of people make real money at it. They make a lot. They take money away from those who are not as good at the game. I say to the average guy, you don’t want to be in that game.” I don’t remember what successful investor is the source of this quote, however it is quite accurate in my opinion.
The typical money managers are not going to help you to win, because they don’t have the skills or resources to play in the big game either. If they did, you wouldn’t have access to them. Recognize that some of the greatest investment geniuses in this country will not take your money unless you are worth hundreds of millions or billions of dollars, and unless you invest tens or hundreds of millions of dollars with them. Is it reasonable to expect them to help you, if you only have a few thousand or even a couple of million dollars to invest, when they can make so much more money dealing with larger accounts?
The smart investor goes for asymmetrical risks/rewards. They might risk a 20% loss for a likely ten times gain. The wealthy accumulate funds over a period of time and wait for a crash in any given market. At that point, those individuals can buy cheap, when the risk is very low and the potential rewards are high. Chasing the market, as most people do, is almost a sure way to end up losing. It is not the smart way to handle finances. So many times, people become antsy because they don’t believe compound interest is fast enough to meet the goals they would like to accomplish. What they don’t recognize, is that once they have the funds available, safe and without question, they have the ability to take advantage of real opportunities as they occur.
When you give, you teach your brain that you have more than enough. Then you can move to abundance. I constantly am reminded of a quote from the Apostle Paul. He basically said that he learned to live with his current circumstances that face him at the time and to be happy under all those circumstances. That is a wonderful philosophy capable of changing a person’s life from negative to positive.
Losers react, winners anticipate. That’s one of the reasons I spend thousands of dollars per year gathering information about the economy, the government, and developments of all kinds. I spend at least three hours almost every day of the year studying this information so I can pass it on to clients in a meaningful way without their having to search for the information on their own. It is true. Most people don’t even know when something happens. Events catch them from behind. The result is costly. It is my job to keep individuals ahead of the game as much as possible so they can avoid problems which can affect everyone and take full advantage of the opportunities which are always created when change occurs.
With a little bit of time, consistent focus, and the right strategies applied, you can achieve financial security and even independence in a relatively few years. This is an approach I have been sharing with clients from the very beginning. Once a person is focused in on motivating goals, it is much easier to develop the discipline of saving in preparation for taking advantage of opportunities as they occur. Then life becomes exciting.