How are you setting yourself up for the win?
As we enter the 11th year of the current bull market, it’s key to remember that what goes up, can come down – rather rapidly. The 9.2% drop in the S&P500 in December 2018, is a stark warning that when the winds shift it can be too rapidly to properly protect yourself. That is why it is key to have a time-proven plan – one that can withstand financial storms. You don’t want to discover you’ve built your fiscal health with straw, as most people did during the Great Recession, when over 10 million homes were lost and the Dow dropped 55%.
So, What’s Your Exit Strategy?
How are you setting yourself up for the win?
Real estate prices are higher than ever, and unaffordable in many cities. This is not a buy and flip environment. And it is definitely not the greatest time to consider buying a new home, even with the massive tax advantages that Americans receive. One of the worst mistakes you can ever make is to buy high in real estate. It can ruin your life for a decade or more. So, if you’re considering buying or selling real estate, you want to learn the most important key to a successful investment. Click to access that blog.
Are you suffering from buy high, sell low mentality (click to access that full blog)? Are you tempted to buy stocks now when stocks are back to an all-time high (afraid you’ll miss the party if you don’t)? Did you sell everything in 2009, during the Great Recession? If so, you are letting stomach acid and euphoria – emotions – rule your investing strategy.
There is a time-proven, easy system that earned gains in the last two recessions and has outperformed the bull markets in between. Yet most money managers don’t use this system. Why? The status quo just isn’t set up to incentivize that. There are some brokerages moving in this direction. However they will attempt to sell you options trading and other high-risk investments to improve their profitability. That is why it is important to be the boss of your money, even if you have someone on staff to “manage” it. This is much easier than you might think, which is why I encourage you to learn the ABCs of Money that we all should have received in high school now.
The basics of a successful nest egg (401K, IRA, HSA, college fund) system are:
Annual rebalancing is one of the most important things that you can do to promote fiscal health. Buy and Hope has been riding the Wall Street rollercoaster, losing more than half in the last two recessions and barely crawling back to even before the next economic storm strikes. Annual rebalancing is a buy low, sell high plan on auto-pilot for your nest egg. Learn more in this blog.
If you need help understanding what you own, call 310-430-2397 or email info@NataliePace.com to learn more about receiving an unbiased 2nd opinion from me.
Trading stocks in the 11th year of the bull market, when stocks are at an all-time high, is like surfing in a hurricane. If you can’t surf ankle slappers, then you shouldn’t be surfing storms. There are times when any yahoo can pick a stock and make money, and other times when even professionals are hard pressed to eke out gains. The wind is in your face right now. Be careful.
Successful trading in individual stocks requires employing my 3-Ingredient Recipe for Cooking Up Profits, which includes using the Stock Report Card and 4 Questions for Picking a Winner. These strategies are outlined in my first book Put Your Money Where Your Heart Is, and taught at my Investor Educational Retreats. Call 310-430-2397 to learn more now.
In today’s world, with Tariffs, Trade Wars, Volatility, Astronomical Debt and Political Tensions, buying low and selling high require considering 3 factors:
Read more about these factors in my recent blogs on Tesla, cannabis, Zoom, Uber, Boeing, Lyft and Wells Fargo.
The Macro Economy
On June 19, 2019, the Federal Reserve Board is scheduled to meet, largely to determine whether or not to cut the interest rate. While some will applaud a cut because companies can continue to borrow money very cheaply, others will understand the risk is that Interest Rates Create Bubbles and the over-leverage party is ready to pop. Additionally, a rate cut signals economic weakness – which is never a good sign. In short, the macro economy could be a severe drag on any high performance of a single stock. Even Apple lost value during the Great Recession, when it launched the Smart Phone that changed our lives and disrupted the phone industry.
Additionally, it’s important to remember that Financial Engineering is Not Real Growth. Click to read that blog.
The Bottom Line
If you wait for the headlines that the economy is in trouble, it will be too late to protect yourself. The December drop (which was the worst December since the Great Depression) is a warning shot that now is the time to be sure that your exit strategy is based upon a time-proven system and not Buy and Hope.
If you'd like to learn time-proven strategies that earned gains in the last two recessions and have outperformed the bull markets in between, join me at my Wild West Investor Educational Retreat this Oct. 19-21, 2019. Click on the flyer link below for additional information, including the 15+ things you'll learn and VIP testimonials. Call 310-430-2397 to learn more. Register by June 30, 2019 to receive the lowest price and a complimentary 50-minute private prosperity coaching session (value $300).
I'm also offering an unbiased 2nd opinion on your current retirement plan. Call 310.430.2397 for pricing and information.
Other Blogs of Interest
Will the Feds Lower Interest Rates on June 19, 2019?
Should You Buy Tesla at a 2 1/2 Year Low?
It's Time To Do Your Annual Rebalancing.
Cannabis Crashes. Should You Get High Again?
Are You Suffering From Buy High, Sell Low Mentality?
Financial Engineering is Not Real Growth
The Zoom IPO.
10 Rally Killers. Fix the Roof While the Sun is Shining.
Uber vs. Lyft. Which IPO Will Drive Returns?
Boeing Cuts 737 Production by 20%.
Tesla Delivery Data Disappoints. Stock Tanks.
Why Did Wells Fargo's CEO Get the Boot?
Earth Gratitude This Earth Day.
Real Estate is Back to an All-Time High.
Is the Spring Rally Over?
The Lyft IPO Hits Wall Street. Should you take a ride?
Cannabis Doubles. Did you miss the party?
12 Investing Mistakes
Drowning in Debt? Get Solutions.
What's Hot in 2019?
The Debt Ceiling Was Hit (Again) on March 1, 2019.
How Bad Will the GDP Report Be?
2019 Investor IQ Test
The State of the Union
CBD Oil for Sale.
The High Cost of Free Advice.
Apple's Real Problem in China: Huawei.
2019 Crystal Ball.
2018 is the Worst December Ever.
Will the Feds Raise Interest Rates? Should They? Learn what you're not being told in the MSM.
Why FANG, Banks and Your Value Funds Are in Trouble.
When the Santa Rally is a Loser, the Next Year is a Bigger Loser.
Russia Dumps Treasuries and Buys Gold
OPEC and Russia Cut Oil Production.
Trade Deficit Hits an All-Time High. Wall Street Plunges 800 Points. How to Protect Yourself.
Rebalance and Get Safe in December. Here's Why.
The Best Investment Decision I Ever Made.
What's Safe for Your Cash? FDIC? SIPC? Money Markets? Under the Mattress?
The Real Reason Stocks Fell 602 Points on Veterans Day 2018.
Will Ford Bonds Be Downgraded to Junk?
6 Risky Investments. 12 Red Flags. 1 Easy Way to Know Whom to Trust With Your Money.
Whom Can You Trust? Trust Results.
October Wipes Out 2018 Gains.
Will There Be a Santa Rally in 2018?
The Dow Dropped 832 Points. What Happened?
Bonds are In Trouble. Learn 5 Ways to Protect Yourself.
Interest Rates Projected to Double by 2020.
5 Warning Signs of a Recession.
How a Strong GDP Report Can Go Wrong.
Should I Invest in Ford and General Electric?
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations.
ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.
Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.
Natalie Pace is the co-creator of the Earth Gratitude Project and the author of The Gratitude Game, The ABCs of Money and Put Your Money Where Your Heart Is. She blogs on Huffington Post and Medium, and is a frequent guest contributor to national news shows and magazines. She has been ranked the No. 1 stock picker, above over 830 A-list pundits, by an independent tracking agency, and has been saving homes and nest eggs since 1999.