This past month has been a difficult one for equity investors. There have been more down days than up days and many investors AND bystanders are getting nervous. We have been experiencing a bull market for the last five years and somehow investors are surprised when the market goes down.
My friend and coach Mark Matson did a video, link below, entitled ‘Gearing Up For The Next Crash..” I encourage you to watch it. It is long, a little over one hour. I believe it will put your mind at ease and accept all downturns as part of the investment process.
After you watch this video please share it with your friends and family or anyone you believe would benefit from this valuable information.
As always there are three simple rules of investing:
Own equities and high quality short term fixed income.
Although they are simple they prove to be very difficult to follow. An investor coach/fiduciary adviser will provide the help building YOUR prudent portfolio and the discipline to stay the course during the inevitable downturns.
During conversations with potential clients I continue to be amazed that these people believe that the Wall Street bullies can and will help them. They believe that Wall Street firms like Merrill Lynch, et al, can and will be able to give them earn above average returns with little or no risk. They continue to believe that their investment money is ‘safer’ with these Wall Street bullies.
These investors appear to have very short memories. Back in 2001 Merrill Lynch had Enron on their Strong Buy list just days before the scandal broke. Their investors lost hundreds of billions of dollars. And yet investors continue to believe that these bullies have their best interest in mind when recommending investments.
Remember this, these bullies are held to a suitability standard while the fee only registered investment advisory firms are held to a fiduciary standard.
A suitability standard means that the recommended investment need only be suitable. There is no requirement that the recommended investment be in the best interest of the client. Conversely, those held to a fiduciary standard must make recommendations that are only in the best interest of the client.
One question I ask is why is the financial services industry fighting so hard to not follow the fiduciary standard? Do these bullies have something to hide? These bullies have been profiting off investors for a long time. And they want to continue to profit off these gullible investors.
Where do you want your investment dollars? With someone who must make recommendations based on your best interests or theirs.
As to ‘beating’ the market Mark Matson wrote in Mind Over Money
“The critical element to outwit, outsmart and out invest the Wall Street Bullies is to know that it’s not that hard. All you’ve got to do is diversify, get market rates of return, and stay the course over long periods of time.”
An investor coach/fiduciary adviser will help you avoid the three signs that you are gambling and speculating with your investment money. When you follow these signs you are helping the Wall Street bullies profit at YOUR expense.
Track record investing.
When you are ready to stop empowering the Wall Street bullies and invest with less anxiety with greater long term returns. You must fire your broker/agent (Wall Street bully) and hire an investor coach/fiduciary adviser.
This last week I attended the Matson Money investor coaching conference in San Antonio. As usual it was a great conference. I was even able to fulfill an item on my ‘bucket list’ I visited the Alamo. A visit I recommend to anyone watched the old TV shows such as Davey Crockett. The RiverWalk area is fun as well.
Each week I mention the Wall Street bullies and the need of an investor coach/fiduciary adviser for all investors. Well Mark Matson is my coach. I found Mark after an unfulfilling stint as a stock broker. His message is the same message I learned in financial classes in college and graduate school as well as my studies for the Certified Financial Planner® designation.
The message is:
The Free Markets work (Efficient Market Hypothesis)
Modern Portfolio Theory
Three Factor Model
work. I always found it curious that no one in the industry taught these academic concepts to new brokers. When I questioned this, the answer was those concepts only work in theory and do not work in the real world of investing. They were wrong…dead wrong.
The real reason the Wall Street bullies do not use these academic concepts is that it does not generate enough fees for the bullies. It doesn’t matter to the bullies if the investor is hurt and often severely hurt.
As I mentioned the conference was a great one. I also was able to hear the great Coach Lou Holtz speak, which I also highly recommend.
Essentially his message is the same as I have been writing about. To be a successful investor you need a prudent process and discipline. No one or no group can be successful without both process and discipline. This requires the guidance and vision of a good (great) coach.
I make an attempt to attend these conferences each year because I am reinforced that my beliefs are valid. Each event I attend Mark Matson’s message remains consistent. Follow the academic research provided us and remain disciplined.
We/I can be swayed by the media or public opinion or everyday life. Without the reinforcement of great coaches like Mark Matson we can easily begin to:
Track Record Invest
This in turn is nothing more than gambling and speculating with our investment money. If you are interested in attaining or re-attaining the American Dream gambling and speculating are NOT the answer.
Getting rich overnight, although possible, is highly unlikely. Working hard, saving and prudently investing our savings will lead to your long term goals. The American Dream is still possible however, there are no short cuts.
So, I will commit to attending the Matson Money conferences (at least) annually to maintain my strong beliefs in the free markets. It is up to you to find an investor coach to guide you to your American Dream.
Stop allowing the Wall Street bullies ruin your future NOW!!