“Slow and Steady” is a wonderful way to think about investing. But thinking isn’t acting. It’s thinking. And that type of thinking can get investors into trouble. In other words, investors believe stocks average around X% per year and expect X% to be in their account by year’s end.
Which makes investing in the moment, today, dear reader, a leap of faith. It feels uncertain. It can feel uncomfortable, unfair, and downright scary. It’s amazing anyone leaves the house these days. Everyone wants “Preservation of Principle and Growth” on their front door mat, but that’s not investing. That’s a fairytale. Then, when another black swan swoops in to rip the roof off the house, no one can sleep.
Sleeping well at night is a gut check. It’s a way to make sure you’re investing within your comfort level. Not your neighbor’s. Let him spend like a wild man. Let him have his five minutes of fame. That’s not you. You be you.
Your Survival Guy likes investments that throw off income. I like stocks, and I like bonds, too. And just like my kids, not in any particular order. And I don’t worry about prices. Yes, it’s a wonderful time to be an investor, but just don’t start believing that it’s easy.
Action Line: In remembrance of Jimmy Buffett, I remember reading about his friendship with the Eagles’ Glenn Frey and how the group gave him his big chance as an opening act.
Originally posted on Your Survival Guy.