Do You Want to Be Wealthy? Here’s a Tip.
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Okay, let’s talk about stock market action over the past couple of weeks. Should I buy or should I sell now? That’s right. The clash and the stock market. Yeah, the clash. I was a big fan of that band back when I was in high school. Still listen to them time to time. Great band. But anyway, should I stay or should I go? Should I buy or should I sell? I knew this was going to happen. Actually, we’re pretty darn good at
predicting swings in the market. Does that mean we trade them? No.
We don’t gamble. The markets are not we don’t treat it like a casino. You had a conversation this past week, Chris, you called that and I said, yeah, wait, wait till the next quarter. First quarter is going to end and then you’re going to see all sorts of algorithmic program trading. You’re going to see selloffs in the market. You know, basically you can queue up.
the usual stock photography on the websites or traders holding their heads and markets are down and what does this all mean? Nothing in the grand scheme of things as far as we’re concerned at Markowski Investments. Well, Chris, why wouldn’t you trade it? Why wouldn’t you trade these things? You can see these things. What if I’m wrong?
What if I’m wrong or better yet, okay, I do that, when do I get back in?
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You gotta be right twice. That’s like, you think about it, it’s almost like one of those ridiculous parlay bets that they keep selling to people there on all the apps out there, making it very, very difficult to succeed. What’s made us successful over the years is we don’t play that game. We look at the overall fundamentals of the company and where’s that company, where do we feel that company is gonna be five, 10, 15, 20 years from now? If there are changes in the fundamentals of any company that’s out there,
We make a change.
Just that simple. You’re seeing things that are happening right now, which are natural when you see them run up in the market. You’re seeing what we like to call, for many people that are being intelligent, it’s almost like a Mr. Miyagi type of market with the bonsai tree cut here, snip there, rotate assets.
That’s what you need to do. Is Nvidia being down 10 % off its highs? Does that change the value of the company or the prospects of the company? No. No. If you think that you and your Robinhood account and all of your infinite wisdom out there are going to be able to out trade the citadels of the world,
and the high frequency traders and the algorithms and you’re able to time this stuff, you’ve got another thing coming. You are setting yourself up to be a loser when it comes to the markets. That’s not investing. It bothers me, but I get it to some degree. People like to equate the equity markets to a casino sometime. Well, you can treat it as a casino. There’s no doubt about that. People do.
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People, it happens all the time. There’s been studies done, one after the, how day traders, how they’ve lost money over the years, trying to guess what’s going to happen next. You don’t treat the markets as a tool to provide income in the sense where my job is to trade, buy and sell stocks and live off the money.
that I’m buying and something. Don’t do that.
Don’t do that. You may think you’re great. I’ve seen people try to do it. They think that they’re smart. They try to take it on as like a full -time career and they fail. Time and time again, that’s not how I look at the markets. I look at the markets as a tool towards building wealth over time. And that’s what you need to do. Should I buy or should I sell now?
Do you think any of the things that are happening right now in the world are changing what we’re doing when it comes to our clients and our strategy for our clients?
at all. Any geopolitical issues that are out there that we’ve obviously discussed here on the podcast, there’s a million things, but there’s always a million things. There’s always a million reasons why. To sell Mortimer, sell! Our reason for selling is, oh gee whiz, okay, we’ve done well in this company, let’s take some profits off the table, let’s rotate some of those assets or, uh -oh.
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I don’t like the direction of this company. Fundamentals don’t line up anymore. I don’t like the management. I think it’s time we sell this company. Those are your reasons. Those are your reasons when you’re trying to build wealth. Now, obviously later on in life, you’re selling, you know, acquired distributions, whatever it may be, to live on some of that money. But you want to build, you want to become wealthy. Let me, big tip here. Don’t try to guess when to get in and get out of the markets.
That’s a loser’s game. Watchdog on wallstreet .com.