If you’ve ever gone to my “Rick’s Picks” tab you probably have noticed that my picks rarely change. That’s not laziness on my part. That’s just me doing my homework. I like to lump myself into the “Investor” group rather than be labelled a “trader”. Investors know that market volatility is part of the landscape, especially these days. What gets people into trouble is following the crowd and panicking when numbers start to move. Those who sold their investments after 9/11 , Black Monday and as recently as last week are those that will miss the inevitable rebound once the “Smart Money” moves back in.
Investing is simply putting your capital to work in a trusted company or institution, and letting them run their business. If they have done, are doing, or will do a good job, you will be rewarded with dividends, yield and capital appreciation. It’s that easy. The hard part is doing the homework to find out which companies have a good management team and a good business model that will stand the test of time. Once you or your advisor find those companies then invest and be patient. If you are not that type then consider yourself a trader.
So when you hear what the “Smart Money” is doing, think about what Steve Jobs once said. “Everything around you that you call life was made up by people that were no smarter than you.”
Till Next time,