Have We Lost Our Minds

HAVE WE LOST OUR MINDS – ITS VICE VERA?

We should be ECSTATIC when equity markets go lower.  We should think it’s Christmas morning when we get market corrections.  We should dam near feel bad (like stealing) when we have market crashes!  NO, I am dead serious!!!  Think about this for a second.  You WANT the markets to be low unless you must sell in the short term.  Then your just FUBARED (that’s Fucked Up Beyond All Repair for those that have never seen Tango and Cash)!

Do you go get pissed because gas went down $1 a gallon?

Do you get pissed when you can buy a ribeye steak instead of a tube steak (a hotdog)?

Do you lose your shit when you can buy 5 shirts for the price of 1?

OK, I can see it coming like a Nolan Ryan fastball.  I don’t have money because I bought at the top of Mt. Everest!  I feel bad for you and wish you luck.  I really do.  However, do we feel sorry for somebody that paid $50,000 for a Ford Pinto, Yugo, or any 2020 SPAC?  No, it is called a bad trade, a bad investment, a mistake, speculation, etc. learn and move on – we all have done it.  When the markets (any market) are on sale we need to try and take advantage of lower costs.  We should be HAPPY!

Yes, these are markets.  Markets are different than the economy – even though they go “hand in hand” at times.  I really do feel bad for people that are at retirement age.  That is why it is SO important to start investing for retirement at the earliest age possible.  This allows you to take advantage of the market over time and gradually move it to much more conservative (ex. fixed income) investments the closer you get to that special retirement date.

If you’re NOT planning on retiring in the next 4 years, you’re getting one of the biggest sales in history.   If you look at past crashes, recessions, and bear markets – they don’t last that long.  I KNOW – we live in the moment and instant gratification – I KNOW!  The great depression had a high during 1929, came to its bottom in 1932, and mainly recovered by 1935 (based to the DOW).  In 1975 we crashed and was back within 2 years.  During the dot com bubble the DOW didn’t even crash (the NASDAQ got killed but was mostly back in 3 years).  During the financial crisis of 2007 /2008 the markets recovered within 4 years.  During the COVID crash / recession that lasted a whopping 8 months!

*I like to give facts – If you bought at the highest level in 1929 it took until 1954 to be totally back.  If you bought the NASDAQ at the peak in March 2000 it took until August 2014 to totally be back.  However, these are not accurate numbers because the problem was the companies that went to zero, does not take dividends, dot com bust also had 911, and the surviving companies that went higher.

I feel bad for short term investors that got a hole blown through their torso.  No, I don’t.  That’s the risk of the short-term game.  You are getting a BIG lesson in investing, time, and price.  If your investing – it’s over a period of time (to let it grow / expand / and innovate)!  Do NOT be forced out of your position!  When prices for real estate, equities, etc. are low – the market is taking some of the risk out for you.    This is where real money is made, and the professionals know this.

Real estate prices haven’t come down (as of this post) – but they are.  If you are looking at moving, downsizing, upsizing, or an investment property you should be getting prepared now.

You just got a gift / opportunity.  Take advantage of it!