When it rains, it pours. Reminds me of a Luke Combs song. And the stock market.
Seems to me a lot of investors are playing the stock market like it’s the lottery, using their winnings to double down in a zero-sum game. Because for every losing lottery ticket there is a winner.
Your Survival Guy sees how retirees or soon-to-be retirees suddenly pay more attention to their portfolio the closer they get to needing it to survive on for the rest of their lives. They focus on reaching a certain number or level as if the market cares.
This is where the desire to use leverage to “juice” returns often comes in, a close cousin of the “stop” loss. Neither cares what price you want. They come a-knockin’ in the name of a margin call and rely on a dried-up buyers’ market that will not pay your stop loss price. Remember, there needs to be a buyer in a zero-sum game.
Action Line: Don’t treat your money, especially your retirement money, like a winning lottery ticket. Because when the music stops, the trading does not. When you want to talk about your retirement money, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
