Thursday, June 6, 2013
Hey. I'm back after being away a long period of time. I have no one particular reason for not blogging. I have certainly been busy with family matters. I also went south for spring break this year for the first time. I have been busy with different things, but not so much with the blogging. I suppose if I were more organized I would have had some guest posts, or I would have had enough posts put together that I could schedule them in advance so they would appear at the right time. I could also make better use of links to other people's blogs and other items in the media and in the news.
So here's the thing - I enjoy doing my own thing but I also feel a need to help others and share what I have learned. We all need purpose in our lives. Lately, however, I have been feeling that I don't really know how much I am actually helping other people with this blog. I also run an investing club, and I have to say, I'm getting less than a great response there, also - not a whole lot of interest, of late.
When I look at the reasons why that might be the case I think it probably boils down to one thing in particular and that would be a lack of consistent results. If I could consistently show money coming in from month to month, no matter what, and have a track record to prove it, then, I think, people would be a little more interested in learning the ins and outs of how to do the same.
What To Do?
Why do I even care? I care on a number of different levels, but mostly I go back to a discussion I had with an old friend at a car dealership, of all places. I was waiting for my car to be serviced, as was he. We got talking about the downturn caused by the credit crisis and what is now being called the Great Recession. He was lamenting the amount of money that his portfolio was losing. In fact, he said he was pretty much afraid to look at his statements because he didn't really want to know just how much money he had lost. At one point, he turned and asked me, "What else is a person supposed to do?"
I felt like I had an answer to his question. My suggestion would be for him to become more of a do-it-yourself kind of investor. In my experience, the financial services industry is out to make themselves as much money as possible. When it comes to making us anything, in return, its really not a concern of theirs. However, given the lack of a bullet-proof, step by step approach I could offer, I had to agree with him.
Last year, I started to revisit my methodology and to do some additional research in what I know to work. Looking back, now, I think the main reason I've found for the inconsistencies which I sometimes experience in my own approach is not paying enough attention to the direction of the market. While there's different ways of determining the direction of the market, whether it's up, down, or sideways, getting that right is the first step.
Having done that, the biggest thing which I've learned from my research over the past several months is that one needs to be investing consistently in that market direction. To try to make money betting against the market, no matter how good the opportunity seems, creates inconsistent results in my returns. It may seem to many as a no-brainer, but it is the largest factor which explains the variance in my results, to date. I'm convinced it is the one change that will allow me to improve going forward. Whether or not I'm right, I have to say that the results always end up speaking for themselves.
I am going to reset my monthly stats at this point in time, and we will start all over again at zero from the point that I make my next investment and going forward. These investments will be the same ones we make with the money in the investing club of which I am a member. It is a new start/beginning and I would invite you to follow along with me as I put my latest improvements to the test.
Care to share something with others you have learned about the markets during the past year?