Are you walking into investment chaos again?

chaos into simplicity

Many years ago when I worked one-on-one with clients, I would send them a package in the mail.

In one of the packages there was a little mirror. And on the back of the mirror there was a question. The question read:

Who is causing all of your problems?
(Turn over for answer.)

It was a simple reframe but one that made the point.

We are the cause of our problems. We may enroll others to help us keep our problems but they are our problems.

Yeah get that? We are the source of our problems. Not the stock market or the economy.

Sure some of us have had better starts in life. Better parents. Better early-on choices. But we all know stories of people who’ve had the same choices you have had and created different outcomes.

And so the thought about that mirror kept reminding me of an old zen buddhist story about a traveling man crossing paths with two buddhist monks.  

The traveling man would ask the monks,  “what’s the town like that you just came from?” And the older monk would answer with a question, “What was the last town like that you just came from?”

The traveler would say, “oh the people were kind, helpful and gracious.” Well, said the monk. That is what you will find in the next town too.

And then another traveler would meet up with the monks. And the same question would be asked by the traveler. “What is the town like just ahead?”

And the older monk would respond in a question, “What was the town like that you just came from?”

The traveler would answer, “Oh, that town was no good. People were mean, uncaring and a bit stupid.” Well, said the older monk. That is what the next town is like too.

So…

When you look at the stock market do you see chaos, confusion and complexity? Or do you see stability, consistency and clarity?

They are both there.

If you look at the price chart below, what do you see?

I see confusion. I see a company that doesn’t know what to sell, how to sell or what they are selling. The picture below is the 3 ½ year price chart of IBM.

Or how about the next image below? What do you see?

I see a company that is in trouble, that might be going out of business soon. I see a company that made many consistent and persistent bad choices. I see a company that has a poor future. The image below is the 3 ½ year price chart of Deutsche Bank.

Take a look at another one (below). What do you see?

I see a company that is getting stronger but just recently has taken a pause. The investors in this company (shareholders) are thinking, “Should I buy more, step aside or start selling my position?  

This company in question is the US Healthcare industry.

And instead of leading with words to describe a company or an industry or even a country. My suggestion is you start with an image.

But just not any image. But an image of its “price.”

Because those words you are listening to… Trade wars. Trump. Powell. Brexit. North Korea. US-Saudi relationship are loading up their own images in your subconscious mind and playing havoc on your life.

So less on the words and more on pictures.

If a recession is really going to hit us soon. Then why is the US stock market not seeing it? Below is a price chart of the S&P 500 Index. Bumpy, yes. Deutsche Bank…? No.

Now, can I prove looking at charts will eliminate all of your short-term losses in your future?

Of course not.

Smaller losses are part of the game of investing. But bigger ones. Or 50% ones are not necessarily. Even if that’s what your big-box advisor has led you to believe.

Can I tell you that your purchase of XYZ will never turn against you? No. Of course not.

Sometimes you are going to do everything right. And you will still lose. But more times than not the more you listen to what your money is trying to tell you. The more times you will have your money in the most stable asset.

And please don’t think for a moment. Stable means bonds. And risky means stocks. Because if you did, you’d be going down the old road of leading with words and not images.

My message is simple.

Get to a picture fast. Do this first. Listen and see to what the picture is trying to tell you. Your money wants you to first look and then think. And the more you listen to what your money is trying to tell you. The more you will consciously know what you are actually looking at.

And the good news is getting these pictures is relatively easy.

You can learn very quickly what your money is trying to tell you by looking at picture. Just scroll back up and look at the four pictures (read: stock charts). They all tell a different story.

Which one does your money want?

Does your money really wanting you to buy yet another pick of the month newsletter. What is it this month… “pot-stocks?”

Your money is screaming for you to listen, but you might not be able to hear above the noise of news, picks, TV, social media, politics and sound bites.  

There’s a better way.

So choose wisely because it will determine how well you sleep. How long you work. And who’s life you are really living.

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

PS – Whenever you’re ready, there’s three things I can help you with…

  1. Do NOT lose half your money [again] in the upcoming recession.
    Whether that recession happens in late 2019 or 2020. A recession is coming and stock markets have a history of falling 40% to 60%. But your account doesn’t have to.  We can help you make sure your money is on the right side of the market. Click here.
  2. Your portfolio has leaks… When will you get a second opinion? When was the last time you had a third-party person look over your portfolio and clearly point out to you where all the leaks are? You might be surprised how many there are. And no, I’m not talking about the obvious fees.

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