When a major financial publication discusses how to leverage your portfolio to boost returns, you realize how dire the financial market situation has become. The strategy works when non-correlated assets remain non-correlated assets. Sounds good on paper.
But, Your Survival Guy remembers how investors rushed to the exits in times of trouble three times already this century. The correlating asset? Investors trying to save theirs.
So, when strategies depend on non-correlated assets to remain non-correlated, remember, everyone feels the same when you-know-what hits the fan.
You and I have discussed this before, but it needs repeating because investors have a short-term memory. All of these “studies” are about looking at the past or the rearview mirror. You don’t drive your car backward. Why then would you make decisions, the most important ones in your life, based on short-term concerns and past performance? That’s not investing. It’s called speculation.
Instead of worrying about the other guys, listen to Your Survival Guy and learn from me. Bad stuff happens in this world. I don’t want it happening to you. Way too much time and energy is spent on short-term performance, month to month, quarter to quarter, year to year. “How are ‘we’ doing?” type of questions abound.
How about thinking in terms of how you’ll survive and thrive and not outlive your money?
Action Line: As you and I drive our cars past empty dealership lots, and think about ghost ships, consider how this trend extends to all areas of the “global” economy. It’s a big, bad world out there, and everyone’s day trading their life away.
E.J. Smith - Your Survival Guy
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