Your Beliefs Determine Your Destiny.

Your mindset and beliefs control your actions and, to a large extent, determine what happens to you in the future.

If you take control of your beliefs you can purposefully choose new ones or modify the old ones to change your destiny.

Money beliefs are very powerful.

When you take control of them you can tap into amazing opportunities for wealth creation.

Your beliefs have been formed by the financial media hype and fear.  They lead you to believe there is someone who can predict the future.  They lead you to believe that someone out there can determine the direction of the market. They know investors are looking for an answer.

These ‘someones’ don’t know what they don’t know. Or even more likely they know they cannot predict the market direction. However, in order to sell their ‘solution’ they must convince you that they can in fact predict the future.

As I have said many times in the past. The equity markets in the U.S. and around the world are random and unpredictable.

All the available information is already in the price of the security. This is evidence of an efficient market. Dr. Eugene Fama won the Nobel Prize in economics for 2013. His winning theory is called the Efficient Market Hypothesis which he wrote in 1965. Think of that it took nearly 50 years to prove he was correct. Truly a man ahead of his time.

So the choice is yours do you believe in the financial media hype AND fear or do you believe that the equity markets are efficient? Do you believe there is an expert who can tell you what will go up and what will go down? Or do you believe the markets are random and unpredictable?

I believe the later to be true so I invest accordingly. I ignore short term volatility and focus on the long term. Like an investor should.

If you focus on the short volatility and invest on that premise you are essentially a gambler or speculator.

Over the long term investing will reward you with great market returns without the stress and anxiety.

If you focus on the short term you must stay connected to the market news daily. And even sometimes minute by minute.

To me this is no way to live a happy life.

To reach your financial destiny you must own equities…globally diversify…rebalance.

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