What Are Your Beliefs?

To say that people in the USA as well as around the world are ‘fed up’ with politicians on both sides of the aisle is an understatement.

I have never seen our country more divided than it is right now. Is there a war on Christianity? In my opinion, yes there is. If someone can prove me wrong please do.

English: Long-term average precipitation by mo...
English: Long-term average precipitation by month (mm/day and in/day), based on 1961-1990 data. Animated GIF. Mollweide projection. (Photo credit: Wikipedia)

Is there a war on those that are patriotic to our flag? Again, I believe yes there is. It seems it offends ‘someone’ to fly the flag, our flag on public grounds. WOW!! If they don’t like the flag of the USA then why do they live here?

It seems that the death of a lion, while a tragedy, is more important than the planned parenthood scandal. Are our priorities out of whack? Or has the media convinced us to ignore the scandal?

I could go on and on about this ’war’. But that will not solve anything. Again, if anyone can explain why this should not concern me please do.

In my opinion all these issues have investors on edge. Many people are seeking safety. Or just sitting on the sidelines.

This should not be the case. I continue to believe that:

  • The free markets work. Businesses will continue to produce products for consumers to buy around the world. What we cannot do is predict what they will buy and how much. The volatility we are experiencing is short term in nature.
  • That no one can predict the future. The equity markets are random and unpredictable.
  • I believe that lack of discipline is the main reason investors lose in the equity markets.
  • I believe global diversification works.
  • I believe you are speculating with your money if you:
    Stock Pick
    Market Time
    Use track records.
  • I believe that the academics have provided strategies, Nobel Prize winning strategies that work long term.

These beliefs may be unpopular now, but I continue to believe. Sometimes standing up for something you believe in requires you to stand alone. I hope this is not the case.

So regardless of the political environment there are three simple rules of investing to follow:

  • Own equities and high quality short term fixed income.
  • Globally diversify.
  • Rebalance.

Although these rules seem simple many times and especially now, require the aid of an investor coach/fiduciary adviser. You need to ignore the media hype and remain disciplined to your long term strategy.

Everyone’s long term is different this will determine YOUR level of risk.

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