GeoInvesting Weekly Premium Email and Call To Action Updates (May 25 – May 29)
Invest Through Crises, Not In Reaction To Them
I hope you had a great investing week as May, 2020 came to an end. Things are starting to get back to normal where I live in Fort Lauderdale, Florida. Restaurants are now permitted to operate at 50% capacity when serving customers indoors and at 100% capacity outdoors. I took advantage of that and dined outdoors at a new italian restaurant on Friday. I’m a sucker for a good spaghetti meat sauce and had not eaten there yet. So, I wanted to check it out.
Luckily, gyms are also beginning to open up, because I decided to treat the entire day as a cheat day and eventually polished off that meal with a late night pepperoni pizza with extra cheese from another food joint. But seriously, let’s hope that June 2020 will be a month where businesses start getting back to normal on a larger scale.
If you are like me, I reject the doomsday scenarios that the media and negative fintwit “experts” seem to enjoy barking about. I don’t know about you, but It bothers me that some people find joy in waiting to take victory laps in hopes that their dire market predictions will come true. Unfortunately for them, they’ve probably missed out on past bull markets and will miss out on future bull runs. Because they need perfect timing, most perma bears I know lose money which then makes them even more negative. From my point of view, it’s better to invest for the long-term, position your portfolio for your risk tolerance and manage your life to be able to withstand drawdowns in your portfolio, or “LRM.”
There has not been one crisis that I have gone through in three decades that was not followed by a quick recovery within 6 months.
If you find yourself being a little negative or scared and wonder how the heck the market (S&P) is just 11% from its high, remember four things.
First, the stock market usually advances ahead of it being evident that an economic recovery has occurred. Second, where do you think that trillions in stimulus money is going to go? Are investors really going to stash their money in savings accounts and T-Bonds, earning low single percentages on their money. And finally, crashes and recessions usually set up bull markets, as this recent tweet from Geoinvesting Premium Member, Gladiator, highlights:
To be 100% honest with you, I was reactionary in the first two decades of my full-time investing journey when markets crashed, doing a lot of panic selling at bottoms, due to not following all the elements of LPM. So, please learn from my own ignorance and mistakes! I’ll see if I can record a video at some point to delve further into the concept of LPM.
However, during COVID-19 I was pretty good at implementing LPM and, for the most part, invested through the crisis. I went from being down around 15% for the year to being up a few percentage points. Had I followed LPM more thoroughly, the results would have been glorious. I will definitely break-down where I went wrong when I make the LPM video. But for now, I will leave you guessing.
One more thing
On the heels of participating in Bobby Kraft’s Planet MicroCap Showcase conference in April 2020 and Little Grapevine’s inaugural virtual conference last week, I will be participating in the Upcoming Investor Summit Virtual Conference to be held on June 9 -12 going over a stock pitch through a virtual presentation.
Speaking of Little Grapevine, if you have not watched the virtual presentations yet, here they are:
Enjoy the upcoming week!
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