“Take Cover! Get Out of the Market!”

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In my conversations and emails with you, you tell me about the many predictions being made for next year. As I wrote to you yesterday, one economist, who seems to be wrong at every turn, is calling for a major correction next year—predicting the stock market bubble will burst. Another manager up in Boston is calling for one, too, and has been for a while.

I’m not looking to pile on with criticism. But you may have heard another hedge fund guy on Fox talk about commercial real estate “opportunities” as if he’s talking up his book to dig out from losses. Whether it’s his book, a real book, or the company’s book, everyone’s got an opinion to sell with the hubris to boot.

When institutional players offer advice to buy, hold, or sell (a rarity), they always seem to be investing in some form of 60-40 stocks to bonds. Grabbing headlines is an injustice to readers because the message comes across as “take cover! Get out of the market!” Which is not what many are doing who actually manage money. The authors? Well, they can say whatever they want. They’re not in the trenches side by side with you. No boots on the ground, so to speak.

The greatest tool you have as an investor is not what you invest in but how you invest. Do you have the Top 10 Investing Habits of the Fairly Wealthy, and do you know the Top 10 Investing Mistakes to Avoid? Successful investing, as my father-in-law Dick Young reminds me, is about “temperament, Survival Guy. You either have it, or you don’t.”

Action Line: Know thyself, dear reader. If you need a plan, I want to help. You don’t have to go it alone. When you’re ready to walk this road together, I’m here.

Originally posted on Your Survival Guy.