A group of us were at the office at 7:30 am, a few hours before the US market opened.
We gathered in the conference room to discuss the Greek debt crisis.
It was 2009.
Guys were offering various scenarios.
We discussed possible outcomes.
Then at around 8:30 am my boss came in with his hair still wet from a shower.
He was a few younger than me. Some called him a boy genius.
He sat down on top of an end table and listened to our discussion.
Then he abruptly tells us we will never be able to predict the outcome.
So stop wasting our time.
What we have instead is an advantage over everyone else who manages money.
It’s really simple.
We have cash on the sidelines.
We can be offensive when the market is defensive.
We can buy stocks we think will rebound the most when there is a snapback.
We all went back to our desks and used our cash and bought on the dip and made a lot of money. It was awesome.
But this is emotionally hard to do.
It takes experience.
It takes guts.
Now that I’m old.
Volatility still makes me sick.
But it creates opportunities.
When you can respect the capital cycle, you can see opportunities others can't take advantage of.
When financial conditions are tight, cash is king.
Innovation gets killed. Companies are focused on layoffs, and cutting back.
Everything or everyone is a commodity, but you can act offensively.
Playing offense requires you to have a proactive mindset and a willingness to take risks.
Don't be afraid to take calculated risks to drive growth.
We all have to stop focusing on the outcome. We can’t control it.
We can only control our actions and the way to view opportunities.
It’s hard emotionally, so sometimes you need an advisor to help you break through the fear.
Your Friendly Wealth Engagement Guide,
Tiffany Kent, Tiffany@wealthengagement.com
Empowering women to take control of their future!
Disclosures: Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward-looking statements cannot be guaranteed.
This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy. Investing involves risk. Principal loss is possible.
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