Transcript
Hello, everyone, welcome to Wednesday, S&P 500, up almost .6%, today hit a new high for the recovery, I think it’s working its way towards the all time high. And so that’s kind of a good start for one of my concepts. Today, I want to talk about one of my investing rules that I’ve learned over the years, which is just to maintain flexibility in your outlook.
One of the most dangerous things that I’ve seen investors do and other advisors do is they really get married to their process, their investments, their individual stocks, and they go down that path. And they just think this is the only thing that’s going to work. And it might work for a while and it doesn’t, and they keep going down that path. So you got to have flexibility. So for example, I think advanced healthcare and technology that did so well in a downturn is still a good place to be. I think that reopening stocks is maybe a little bit early in terms of when to get into those. That’s my theory.
Now at the same time, I always have to tell myself the same thing, which is the market doesn’t care what I think. And so I have to be flexible. So I already have a portfolio designed if those reopening stocks take off, and start to really suck the oxygen out of all the other things that we have. And so I haven’t seen that enough yet, I’d like to see some more proof. But I think that’s a really important component of learning how to invest is to be flexible in your outlook, or, you know, you’re going to invest for the rest of your life. And that can be quite a while and things do change. You know, there’s different types of investments that come along and those types of things. And so, I think having some flexibility in your overall concept.
You know, I mean, GE is a famous stock that goes back to the original Dow component that people got married to because it did so well for so long. And of course, you know, you know, it dropped nearly 90% and those people that were married to that and didn’t maintain flexibility, you know, they got hurt by that. So that’s what we want to continue to do is to maintain flexibility. Let the market tells us what to do have theories, create portfolios for those theories, and be ready. Anyway, so that’s our message for the day. I look forward to talking to you tomorrow. Thank you very much.