Building Wealth Doc's note: The bull market has run for more than seven years now. Crisis and ruination seem like they're just around the bend...
The mainstream financial media are wringing their hands and agonizing over all the things that could send the markets or the economy into a tailspin.
As my friend and colleague Steve Sjuggerud recently wrote in his daily newsletter,DailyWealth, it's not time to worry yet...
The mainstream financial media are wringing their hands and agonizing over all the things that could send the markets or the economy into a tailspin.
As my friend and colleague Steve Sjuggerud recently wrote in his daily newsletter,DailyWealth, it's not time to worry yet...
That's all it took?
A couple of bad days in the market – after a long stretch of calm – and you think it's all over?
So you skinned your knee (so to speak). Big deal. We all have. It's part of playing the game.
Don't throw in the towel... Instead, get back out on the field. You have a lot more points to put on the scoreboard before the game is over.
All right, enough with the bad sports clichés...
You get my point. I (Steve) hope you take my message to heart.
YOU KNOW WHAT A TOP FEELS LIKE. You went through one in the real estate boom in 2006-2008...
At the top in real estate...
• EVERYONE was optimistic about house prices. Nobody was cautious. No one even thought that there was even any downside risk. (People felt that way about dot-com stocks in 1999, too.)
• EVERYONE was "in" – and heck, if you weren't "in," you wanted in!
• EVERYONE was talking about real estate at cocktail parties, sharing their "can't lose" strategies.
Everyone thought they had their own spin on it... They thought they had their own unique way of making money that was somehow special to them.
They didn't realize that, whether they were "flipping" houses or "developing" houses, all the strategies were essentially the same – in that they all relied on higher and higher asset prices to succeed.
THAT is what a top looks like. THAT is what a top feels like.
You might say, "Steve, but that was house prices. This is stock prices." If that's your argument, you're fooling yourself...
Investors had the exact same (delusional!) feelings about tech stocks in 1999 that they had about house prices in 2006-2008.
Look, you KNOW what a top feels like – so let me ask you, does this feel like a top in stock prices?
Is everyone optimistic about stock prices? Is everyone "in"? Is everyone talking about their "can't lose" stock strategies at cocktail parties?
If you can't answer yes, then this is not a top. This is not a moment like the one we had with tech stocks in 1999, or real estate in 2006-2008.
It's not.
This is not what a top looks like. Don't try to convince yourself otherwise. And invest accordingly...
Good investing,
Steve
Doc's note: Fear can offer incredible investment opportunities. Recently, Steve looked into an area of the market that most investors are terrified of... That's one huge reason why it offers triple-digit or larger gains.
Steve says it's like having a "second chance" to invest in revolutionary Silicon Valley companies – household names that essentially every U.S. investor knows. In fact, Steve predicts that one of the companies he's recommending will become the largest in the world. Yet most U.S. investors have never even heard of it...Click here to learn more.
YOU KNOW WHAT A TOP FEELS LIKE. You went through one in the real estate boom in 2006-2008...
At the top in real estate...
• EVERYONE was optimistic about house prices. Nobody was cautious. No one even thought that there was even any downside risk. (People felt that way about dot-com stocks in 1999, too.)
• EVERYONE was "in" – and heck, if you weren't "in," you wanted in!
• EVERYONE was talking about real estate at cocktail parties, sharing their "can't lose" strategies.
Everyone thought they had their own spin on it... They thought they had their own unique way of making money that was somehow special to them.
They didn't realize that, whether they were "flipping" houses or "developing" houses, all the strategies were essentially the same – in that they all relied on higher and higher asset prices to succeed.
THAT is what a top looks like. THAT is what a top feels like.
You might say, "Steve, but that was house prices. This is stock prices." If that's your argument, you're fooling yourself...
Investors had the exact same (delusional!) feelings about tech stocks in 1999 that they had about house prices in 2006-2008.
Look, you KNOW what a top feels like – so let me ask you, does this feel like a top in stock prices?
Is everyone optimistic about stock prices? Is everyone "in"? Is everyone talking about their "can't lose" stock strategies at cocktail parties?
If you can't answer yes, then this is not a top. This is not a moment like the one we had with tech stocks in 1999, or real estate in 2006-2008.
It's not.
This is not what a top looks like. Don't try to convince yourself otherwise. And invest accordingly...
Good investing,
Steve
Doc's note: Fear can offer incredible investment opportunities. Recently, Steve looked into an area of the market that most investors are terrified of... That's one huge reason why it offers triple-digit or larger gains.
Steve says it's like having a "second chance" to invest in revolutionary Silicon Valley companies – household names that essentially every U.S. investor knows. In fact, Steve predicts that one of the companies he's recommending will become the largest in the world. Yet most U.S. investors have never even heard of it...Click here to learn more.