Is Your Investing Like A "Bird Box" Challenge – Part 2

“Some people boast of selling at the top of the market and buying at the bottom – I don’t believe this can be done.” – Bernard Baruch.

In Part 1, I outlined how it can be emotionally healthy to examine investment account statements through bullish and turbulent market cycles. Consider it a healthy exercise in financial awareness; to generate questions or set a meeting to review a financial partner’s overall money and risk management philosophy.

The financial services industry prefers that investors ignore frequent scrutiny of accounts that may generate queries. Although I understand ‘checking in’ too often may motivate emotional investors to make changes haphazardly (which is not a good thing), there’s nothing wrong with curiosity, examination and query (as much as the industry makes you feel stupid for doing it).

Brokers either don’t have confidence in their customers or are hesitant to respond to questions as their answers are repeated regurgitations of industry dogma designed to sound like guidance yet are empty words to shuffle investors along to engage a new prospect. After all, those sales quotas are killer.

Trust your inner Bird Box or your gut when it comes to common statements made by big-box financial brokers and their strategists. If it sounds too good to be true, it is! Here’s another –

Part 2 – I Think We’ve Seen the Bottom (Top)!

Oh, the elusive stock market bottoms and peaks. A Holy Grail of market calls. Wall Street is paved with the hubristic commentary of financial pros who are bold enough to call big turning points in market trends. Pundits are unashamed to bloviate on national financial news as they know they’ll never be called out for being wrong.

Unbelievably, there is a legendary Wall Street veteran who I recall was close to calling the 2009 market bottom. His name is Laszlo Birinyi. In December of 2008, his organization produced a report (I still have my original copy), titled S&P 750: The Bottom. There are few market sages I admire and most of them are dead. Mr. Birinyi remains one who is still breathing! I recall studying his report and hoping (perhaps praying), he was correct. The S&P 500 bottomed in March of 2009 at 666.

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