“Off The Wall” Blog
Unique, straight-forward, unfiltered opinion on topics of concern for individuals with newfound wealth.
Why is boring so hard?
By David B. Armstrong, CFA | Apr 24, 2020 | Weekly Market Commentary
This could be the shortest blog I ever write.
When something is boring, it’s hard to stick with it, no matter what “it” is.
A TV show.
We are humans and we gravitate toward being entertained. We all like stories.
And especially competition.
So, these things are provided to you across various mediums – stories in search of an audience.
To most people, a reality TV show is more interesting, more “binge-able,” than a documentary about the different species of ferns.
Investing is boring. And it should be. But that means it’s tough to stick with it – especially when there are mediums exposing you to stories, drama, and competition.
Investors are not the real audience for CNBC, but they WANT you to tune in.
CNBC provides it all by parading talking heads that all seem to have control over the facts – control over predicting what WILL happen, control over-explaining what IS happening, and control over-explaining what DID happen…as if any of them really know.
If you are a true investor, someone who knows why you are investing in the first place and in complete command of your own goals, YOU ARE NOT CNBC’S AUDIENCE.
I’m not saying that you can’t watch CNBC…I’m just saying that as a REAL INVESTOR, you are not the audience and there is no idea that you can glean on the show that will give you some sort of edge over everyone else.
Always know your need for cash over the next 12-18 months, have a liquidity plan for those needs, and have a reasonable investment plan for the rest. Then don’t mess with it because you think you have discovered an edge–instead invest in the future you by letting time work to your advantage.
Investing is hard for people who get bored easily – which, frankly, is most of us. It’s especially hard now with all the noise on the news and on CNBC. Having patience and discipline is hard and boring BUT THIS IS ALSO A GREAT TIME TO LEARN and reinforce that behavior as smart and savvy.
Despite what the noise may tell you, there are no patterns or facts that can help you tell the future. Use the TV for entertainment but do not base investing decisions on the excitement or “story” you are watching.
This is also all summarized in the chart I drew below.
Keep looking forward,
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Monument Wealth Management), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.
All indexes referenced are unmanaged and cannot be invested into directly. The economic forecasts set forth may not develop as predicted. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Monument Wealth Management. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Monument Wealth Management is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice.
A copy of Monument Wealth Management’s current written disclosure statement discussing our advisory services and fees is available for review upon request.
David B. Armstrong, CFA
President & Co-Founder
Dave got into the industry when he discovered his passion for finance in his mid-20’s. He’s a combat veteran and served as an officer in the United States Marines Corps on both active duty and in the reserves, retiring at the rank of Lieutenant Colonel. While serving on active duty, Dave was unable to spend money on deployments, so he became a self-taught investor. Along with a few bucks cash as a bouncer, his investing performance grew to be good....
Stay up to date!
Subscribe to our “Off the Wall” Blog for articles and videos on all things wealth management, by all members of our Team. Unlike Facebook, we will never share your data with anyone.