Avoid This Common Mistake
Don’t let the headlines fool you… no one really knows what’s going on.
There are 7 billion people on this planet, and not a single one of them can tell you where the Dow will close tomorrow, next week, or in a year from now.
Scary and overly optimistic headlines are the norm. They’re how news sites get people to read their content and click on their advertisements.
Lately, we’ve been hearing about how the market is due for an imminent collapse. In all honesty, it makes me think that we’re headed to new highs.
Time and time again, the exact opposite happens because as soon as the crowd is headed in a direction, it’s already priced in. It forces the masses to either chase asset prices up or sell them at or near the bottom of a big decline.
Calling tops and bottoms is impossible, and anyone who claims they can is lying. Some were lucky, including me, who accurately called the 2008 crisis and the collapse of Lehman Brothers.
The truth is that in March of 2008, when I predicted the Dow would fall to 8,000 and Lehman would collapse sometime in the fall of 2008, I was padding my prediction.
What I really thought was that it was going to happen in the spring or summer, but to be safe, I padded my prediction and said the fall of that year. It turns out that in September, I hit the jackpot with my forecast and nailed it dead on.
Of course, I fully took the credit, gorged myself on advertising revenue from my YouTube channel, and eventually used that momentum to launch the very letter you’re reading now.
Allowing myself to literally do my hobby for a living. Since I was 13 years old, I’ve been reading about personal finance, investing, economics, and anything about money.
One thing I’m certain of is that no one can consistently time the markets.
The market in 1992 was filled with headlines about how “overpriced” it was, yet for the next 20 years, it achieved an annual stock market return of 9%.
Everyone from Greenspan to Robert Shiller have tried and failed.
It’s why I believe our focus should be on buying the right businesses, with over 90% of your investment bringing in cash flow.
When we speculate, we need to keep it at a minimum, never invest what we can’t afford to lose, and be extremely disciplined in partnering with the right winners!
Ignore all the noise of the markets and fake news.
You can achieve financial independence in 5 years or less, but you have to stay the course and not allow the market to determine your long-term decision-making, especially when it comes to how happy you can be once you’ve fully bought your freedom.
1. Focus on cash flow.
2. Ignore the headlines for better or worse.
3. Partner with exceptional people.
Legal Notice: This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.