WhyYou Are SpeculatingInsteadofInvesting
Peoplebuyingassets—stocks, bonds, commodities, real estate—are ignoringtheassets’ returns–on–investment, andinsteadpinningtheirhopesthatwhattheybuytodaywillgoupinpricetomorrow.
Tell me if this rings a bell: You spent a lifetime putting together a little nest egg, and you want to invest it in something that makes a decent return-on-investment. Something safe and boring, because you don’t want to spend a sleepless night worrying about your money.
Instead, you’re tossing and turning at night because you are not investing—you’re buying assets and hoping they go up before you sell them.
Now imagine a millionotherinvestors
andyou’llstarttogettheidea.In other words, you’re speculating—you’re gambling. You’re hopping onto a stock for barely-logical reasons—then dumping it at a moment’s notice—then rotating into bonds because of some dodgy tip you heard from a buddy of a friend—then rotating out of bonds in a panic because of what some idiot on CNBC just said. Then you wonder if you should buy gold? Uh, no wait, agro-commodities—no, no, no, wait, uh, industrial commodities? Or REIT’s—or, no, ETF’s? Which one? . . .
Christ, whaddo I do . . .
It’s frightening, isn’t it, this buying into and cashing out of different assets—this perpetual momentum-chasing and constant speculation. As frightening as driving a convertible down a twisty mountain road at 100 miles per hour, with no brakes and iffy steering: It’s suicidal—yet there seems no way to get off this horrible ride.
Why are you chasing momentum and speculating? Why is your broker making more money off of your portfolio by way of fees than you are from profits?
Easy: Because today, there is no asset class which is giving consistently reliable, mid-level returns-on-investment.
And this is a deliberate policy . . .
Please visit Gonzalo Lira’s Strategic Planning Group
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