Comfort is not your Friend

Go backpacking, and the first thing you’ll ditch is comfort, because it will not get you to your destination. The best advice I have ever received is to get a pack smaller than you think you need, because you will inevitably fill it up with needless comforts that only weigh you down. Keep your comforts and you’ll end up with weak ankles and will be marching miles behind your friends.

I had a conversation recently with an individual who informed me that they have their entire retirement savings in cash since Trump was elected; this individual thought Trump would be bad for business. And now, they’re stuck between a rock and a hard place – regretting their choice – but feeling there’s no other option than to wait for a market downturn.

This, my friend, is a backpacker with weak ankles. His comfort was politics, and he made a choice to let emotions override his investment thesis, akin to stuffing your sack with a few bottles of wine. Not only does it weigh you down, but it’ll make the next days’ progress that much harder. And guess what – you have to carry that empty bottle till the bitter end.

But here’s the thing: President’s don’t matter. The economy is bigger than one guy (or gal). Look back in time and you’ll barely notice the daily, monthly, or quarterly effects of what one person says or does on financial markets, because politics take forever, and policies are not enacted in a day. It can take decades for words or actions to play out to an economic end.

Investment opportunities are almost always born out of discomfort. Likewise, market collapses are almost always born out of confidence.

Don’t confuse politics with corporate profits, and don’t let comfort weigh you down.

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