Learning What Not to Do…
“In investing, what is comfortable is rarely profitable.”
I would encourage you all to consider the idea that much of what the public has been “taught” by the financial media about investing and building wealth is almost entirely wrong.
Well, the mainstream view is that risk and volatility are bad for you.
But they’re not. In fact, risk and volatility are required for success.
The same goes for corrections, trade ranges, choppy windows, sector rotations, periods of being ahead and periods of being behind.
Folks, market movement and volatility do not define your risk.
The only thing that defines your risk is time. That has always been the case and it always will be.
Daniel Crosby wrote in The Behavioral Investor: “Trusting in common myths is what makes you human. But learning not to is what will make you a successful investor.”
Over many years I’ve come to the opinion that you should almost always think the opposite of what the media is reporting in its never-ending battle to keep your attention.
I Would Encourage You To…
Accept that everything in business is always changing, from processes, to creation, to research, to the delivery of services and products.
And sometimes that change is imperceptibly slow, and other times blindingly fast.
I would encourage you to embrace these things as opportunities and recognise how very fortunate we are to be living in these times.
And I would go on to say that the next 10-25 years alone will birth more change and opportunity than have been witnessed in the previous hundred years.
This will mean that the higher prices rise, the more seemingly vicious, steep, and quick will be the corrections along the way.
Alongside these events, the cycles of fear will be dramatically quicker.
For example, when the Dow Jones hits 50,000, you can be assured it will feel like a lot further down to the ground than it does at say, 35,000, which is about where we are now.
Oh, and one more thing…
You know what a new all-time high tells you? t tells you that every single thing before it which you were told was bad news was dead wrong.