Welcome to the end of the week! Just sit back, relax, and enjoy this weeks roundup in another edition of Happy Hour.
Don’t Be A Loser
Gallop released its latest Optimism Index numbers early this week. The seven-year highs seem like a big deal even though it’s not even half of where it was in 2007.
The poll was conducted a month ago. I wonder where investors stand after the past two weeks? Squeamish? Skittish? Optimistically cautious? Walking on eggshells?
That’s been my take on every down move since the crash. Everyone wants to know “Is this the one?” As if they’ll somehow jump out in time to save their money and jump back in when it ends. It won’t happen that way, but they’ll try anyways.
Thanks to the internet of things, guessing the next crash is easier. Take the CNN Fear and Greed Index. This thing is reading like it’s DEFCON 1 right now:
By the way, the index was 3 yesterday. We’re two points less fearful today. Whatever that means. Must be a Friday effect – TGIF. Here’s how it compares to the market:
Imagine if I spent every day with my finger on the trigger, trying to buy and sell based on the extreme emotion caused by the irrelevant news of the day. Each time, I’ll feel great. The image burned in my brain that somehow I saved myself money or made it. Yet, I won’t know the full story until months or years later. All that matters is I felt good then.
Compare the two images, that’s the full story. I never would have timed it right – sold the high or bought low. It would cost me money. Plus the fee charged for every transaction. Boy, would I feel good about it.
We spend too much time trying to spot the next crash and correction, hoping to avoid it. It makes no sense. No matter how many times we try, it never works out. What’s worse, it only helps those who’ve been waiting for that reaction all year.
Stop making it easy for other people to make money. Embrace it. Use it. Take advantage of someone else’s mistake.
That’s the great thing about the market. There’s a person on the other side of every trade. Only one can be right. As bad it sounds, that’s investing. If you want to make money, someone needs to lose. Whatever you do, don’t set others up for success at your expense. Don’t be a loser.
Tax Extension PSA
This is a PSA for anyone who filed for a 6 month tax extension earlier in the year. You have less than two weeks to finish and file your return. That tax extension ends on the October 15 deadline.
- The Simple Secret to Building Wealth – WSJ
- Being Mindful Can Help Guide a Decision – NY Times
- Should Investors Chase After Bill Gross Again? – J. Zweig
- 6 Success Factors for Retirement – Morningstar
- Revisiting the Lehman Brothers Bailout That Never Was – NY Times