Decisions are often made on gut and emotion. Then the supporting narrative with graphs and numbers are found for justification. It’s the way of the world.
So, ask yourself, “How much is enough? How much food? How much car? How much house? How much money in the bank? How much retirement? How much net worth.”
If you have put a number on the answers to these questions, then ask yourself, “Where did I get my number? What publication, or mentor or school or algo or guru planted that number in my head?”
Is that number founded in reality? Or is it founded in FOMO?
Rule #1 of Goal Setting is to make it quantifiable and achievable. Otherwise, you are doomed to eternal confusion and bitter disappointment. Are your numbers achievable?
So, let’s talk stocks. The culture is assuring investors that the Bull is supposed to run forever. … to infinity and beyond!
But Stocks appear to be stumbling. The Bull may be stumbling.
Last year the market crashed and was again rescued. How many rescues are there going to be until they don’t work?
These are hard, unpleasant questions. But they have to be answered by someone.
The Bull may be stumbling because inflation is now raising its ugly head. Not the type of inflation that central banks and monetary or fiscal policy can control.
This inflation is new. It is inflation caused by plague related supply chain disruptions. It is inflation caused by geopolitical realignment.
Most devastatingly, it is inflation caused by the beginning of what looks like a new Commodity Super-Cycle. Everything that grows or comes out of the ground is becoming more expensive.
So the Bull may stumble as it looks into the future and sees growing uncertainty and instability. At least it appears to be stumbling. The day will come when that stumble will be more than peccadillos … and we will see the bull stumble and collapse on the floor of the bullring. Get your house in order now.
Are you ready?
Do you have a plan?
If you have a plan, you should have a number. A “stop-loss number.” A “lowest net worth number” that will trigger you becoming more defensive.
Unfortunately, many investment advisors have never experienced a Bear Market.
Ask yours.
At Higgins Capital, we’ve come through 3 Bear Market Monsters.
Experience The Difference visit us at: https://www.higginscapital.com/Meet-The-Team.2.htm
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