Oops. This Might Really Hurt Retirees

We’ve been taught bonds are safe and stocks are dangerous. 

It’s not that bonds are actually dangerous, it’s the story of safety that has been wrapped around them for the past 50 years that is dangerous. 

We are all taught to keep “safe money” in bonds. And money that can get kicked around and beat should head over to stocks. 

But what if things have changed? 

What if the next crisis will be in bonds and not stocks or real estate? 

Because bonds are acting like stocks and stocks like bonds. 

When bonds yield zero (and below) are they still smarter than stocks? 

Stocks (in the US) are about to break out to new life time highs. And yet they are hated as people are pouring money into bonds. 

What is going on?

People are following news, feelings and stories and not price. Price is king. Your money goes up or down based on price and not theory. 

But people don’t know that. Because they haven’t trained their brain or money to do what’s best for their money. 

People have been taught that information is the key to getting it right. But what if they are wrong?

After all, the highest paid baseball players in the world (read: the best ones) go to Spring Training every year. And not Spring Learning. Just saying. 

This week I have a great video that zeroes in on August’s volatility in stocks and bonds and what it means for the coming recession. 

Buckle up because the safe haven isn’t going to be what it’s been in the past.

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

PS – I’ve have five extra things for my Money Badges this week…

(1) Never confuse the top of the chart with resistance.

(2) Preaching To the Choir
Avoiding mistakes is an under-appreciated way to improve. James Clear

(3) Wow! Only six words. 
“Nothing will work unless you do.” – Maya Angelou 

(4) Millennials… pretty funny. Especially the end.
Understanding the Millennial mind in less than three minutes. 

(5) Training is actually what you’ve been looking for all this time…
If you have the right symbol then you’ve solved [only] 10% of your problems. The other 90% is acting how you are supposed to act when you are supposed to act that way. AND the best symbols in the world can’t save you if the entire market is dumping. Or you don’t do what you are supposed to do. Training and this conversation is what you’ve really been looking for.