Welcome to the Tom D show for our
financial hour.
We're brought to you by the pre financial
group where we make your money work for
you. Joining us.
Mike Johnson Chad S, and here is our
host, Tom Du.
Picking up a little. This is.
This is a an album that Phil Ke
whom we... I I normally don't
do the same artist
for 2
hours, but
this is an album I called the wind
and the wheat
And I think this album probably came out
25 years ago, maybe 30.
And
probably closer to 30.
He's
his
guitar vi,
is kind of in full display here. It's
just an extraordinary,
really a good album.
And this song is the title song with
the album.
But
this was,
you know, he kinda gone beyond his
sort of early rock and roll days.
Not that he can't still rock out, which
he can, but
he's been willing
to be sort of
a guitar entrepreneur
in a sense.
Try different things
really into this looping stuff, which
you know, it's... It... He uses it to
kinda amplify the whole music. So anyway, that's
Phil K gig again.
And the album is the wind and the
week, which I think the song
sounds like that. You can almost... It's got
definite.
Visualize it.
Beautiful song. Yeah. It... It's really extraordinary.
Alright. What our brains know about stocks, but
won't tell us now.
I wanna compare this to something
because
that can apply to a lot of things.
It's not just about investing.
Give an example.
There's a good friend of mine named Boone,
Logan.
Boone Logan is is an extraordinary human being.
I think we had him on the show
1 time. We did about the cancer blast.
Yeah. That's right.
Boone
got me involved
5, 6 years ago.
Yeah. It's been that long in
sporting plays shooting.
Now sporting clay shooting is a thing where
you have a shotgun,
and you're shooting at a moving
target that is a
small little clay disc. It's like a little
clay frisbee.
It's about
3 inches across
usually
orange colored or something.
And it is thrown
by a machine that is
design for the purpose of throwing the the
disc,
and it'll follow
some kind sometimes a very
predictable flight pattern, sometimes not so predictable.
When you're shooting at something
like that,
it's too quick.
The the thing's happening so that the if
you try to think about it cognitive.
You're not gonna hit it.
So now what you're doing is
letting the body sort of tell you
where it's gonna be. Now that's the brain.
It's just not the cognitive part of the
brain.
What
This article is is by... Is is kinda
trying to say is
it ain't just about thinking about it.
There's an element to it
that's sort of like
neural knowledge
that's not cognitive. That's
kinda under the service, almost
subconscious.
And I believe that's true. Sometimes you look
at a stock and and you
you just... There's something about it that...
And you've read the... You know, you know
what? You've done your homework on it. That's
not to say that you don't.
But there's things about it that,
you know, just...
We we when we come to an agreement
on something to buy,
It's not always as a result of a
long discussion and, you know, measuring the pros
and cons.
Things like that. With there's other things about
the company
and the stock itself
that
hit us on in a level
I'm not even gonna say it's emotional because
that makes it sound like, oh, you you
like it or you don't. It's even bigger
than that. It's just...
The presence of the company.
There are things about that that it... It's
hard to put it into word, But I
know what this guy's is getting at. Mh.
And it... You know, this is Jason's Wig.
Who's a... You know, he's he's 1 of
the better...
Article writers,
article writers.
He's he's
he's 1 of the better
financial journalists
out there these days. He seems to understand.
He goes beyond just the numbers on the
page
And the this or that. He talks about
kind of investing
like you might
talk about other things that are non investing.
And I like the premise or really do.
Well, because we talk so much on here
about research. And research is it's foundational. It
it really is. Right.
But the research
That's that's the nuts and bolts, the numbers
when you're looking at something. And you you
have to have that foundation door but that's
not the whole story.
Because
when... Like like you said, you know, it's
it's kinda like muscle memory on the on
the shooting.
You know, music has some of those same
aspects. It's it's muscle memory, something that comes,
you know, kinda a little deeper. You than
the cognitive of neural knowledge sort of like.
The brain
element
it's not just cognitive. It's not just the
conscious part of it. It's parts of it
that are non conscious. Yes.
To
try to explain it a little bit. So
you you think of,
1 1 of Buffett,
sayings, you know, you be you're you should
be greedy when others are fearful and vice
versa.
Well, what that's looking at, that's looking at
the emotions, the the the emotions of the
herd, the herd mentality.
But to be able to
capitalize on that, you have to be
able... I mean, you have to control your
own emotions as an investor. Right. First, that's
hard enough in and of itself is controlling
your own emotions, thinking long term,
But then you have to take that a
step further and say, okay,
emotionally as a human being,
this is how I feel right now, given
XYZ that's happening in the market with a
particular company.
And then you look at you you examine
that feeling and you say, okay. Is that
what most people are feeling right now. Well,
give give you an example right now,
to me,
the base feeling right now in the market,
is greed.
To me, like, personally, that's what I feel
as the base
emotion because the market's going up and that...
And it's greed.
You have to look at that and say,
okay,
that's when you have to start being the
thought market was going up just because they're
really nice people. Yeah.
You you you have to take that
emotion and then say, okay, Because that's just...
My
gut feeling
of what's going on. You take that and
say, okay. That's when you need to start
being concerned or
you see an opportunity of these different things.
But here's the other thing. Yes of that...
That's gonna be true in certain
extremely hot stocks. Yep. What's that stock that's
just gone up more than Nvidia,
super micro. Yeah.
Now that thing has been just...
What is it up 8 or 9 times
in the last...
I don't have the numbers in front of
me, but that it's
The stock was a few hundred dollars,
6 or 7 months ago and it's 900
now. So what do they do?
They make...
Ai servers. They compete actually with Dell,
but they are
projected because that's where the growth is. Their
projected to see just phenomenal growth over the
next couple of years and people are paying
up for that. Yeah.
The point is become a great treat is
happening in certain stocks. Other ones nobody cares.
Right? Right? There's there's a lot of broken
down stocks
And and so everybody says, well, the stock
market's is up. We're talking about 7 or
8 stocks, You know? Yep. And and then
there's some other sub sub...
Species there,
but it's not across the board. And So
I think the greed is being driven in
certain areas that are a really crowded trade.
And then there's other ones where there's fear.
Right? So they can be going on at
the same time. It's just... It all makes
up the market,
but Mh the stories can be vastly different
from 1 company to the next. Right? And
and that's... Because when you're looking at the
market, the S and P 500,
you're looking at an average of everything in
there. So when you start looking under the
surface and you look at the companies or
the sectors where you've had fear, being priced
in or just
maybe not even fear. In some cases fear,
But in some cases, there's just it's just,
like Well, it's it's there. There's no interest
in it. And Yeah. They they're not even
it's not even fear.
It's...
Well
it's it's just apa. Yeah. Yeah. And that's
where you find on the flip side of
the coin of fear,
or on of greed, that's where you can
find opportunities.
Right. And so
investing
It is it it is
research, nuts and bolts, numbers,
but it's also
the... And
interpretation of that, and that's where it gets
to experience,
and there's a difference between
experience and having experiences.
You know, you get experience by learning
through these different experiences that you've had. And,
you markets, they're they're they're always changing,
But there's certain
certain,
really is just
human behavior
that's common through the whole thing, and you
see these, you know, booms and busts and,
you know, fear and greed and all these
different things. That's something that's common.
Now you can't time the market based on
that,
but you can you can find long term
opportunities
or keep yourself out of a lot of
trouble
by getting out of certain areas.
Right. So
investing so much more than just the numbers.
It's interpreting the numbers. It's interpreting experiences
and
like like your shooting example.
But there's there's times.
When you see a company and there's something
about it, that
it it doesn't really have to do with
the balance sheet. It has to do with...
Sometimes it's just what they do.
It's the business that they're in. They're going
to
do a process or have a product that's
going to revolutionize.
An industry. And I mean, change the economics.
And I mean, you can use
Starbucks as an example. There was no such
thing as a, you know, being coffee was
not the popular
coffee houses were not a popular gathering spot.
And So what created did just kept raising
at Christ and suddenly coffee got popular. That's
right. You know, it made yep may let
me tell you some.
It's not about... I I think we might
be at a point now where everybody but
Starbucks is finding. They they can't price a
latte at 8 dollars.
But
Starbucks,
let me tell you some.
I go and I'm gonna be real honest
with you.
That's about 5 times Today. I'm doing it
because of her.
You walk into the Starbucks.
55
percent of that's being sold on the app.
Yep. They're walking in and getting their coffee.
They're not in there to visit. They're not
in there to stand in line and give
the barista to their order.
They've sent it in over the app. They're
walking in...
And any other coffee
stock or company.
That wants to get serious. If they don't
have the app, they're never gonna be in
that league. That is the moat
the Starbucks has right now.
Is the app. You know what is so
interesting about that too? Is it used to
be a visiting spot? People would meet people
to have coffee or have a business meeting
or whatever. Work a a lot. A lot
of the Starbucks have now eliminated.
Right seating areas.
I didn't know that.
Increased
the area where they have available for people
to come in and out
was that the 1 on Richmond Road, that
was remodeled and they took all of the
customer seating out of that.
You know, the the... And and this...
Company over here on,
where the salt used used to be the
it's on,
high street there.
That's a coffee thing in the lower floor.
You walk in there. It's like you're walking
into a study hall.
So there's no way
that the revenue
of those customers
is,
you know,
is there. Because they're... They don't have AAA
never ending of stream of people coming in
to pick up their cost Starbucks is selling
so much more. I didn't wanna get on
Starbucks necessarily.
But
it's sort of chad fault. That's right.
That business plan is not gonna get...
You're not gonna bust that business plan unless
you're in a small town, and they don't
have 1 there something. Yeah And and if
with people using that app, sorry.
You're toast. Well, there are other examples. I
mean, that's just a disrupt. I mean. You
want to invest in disrupting businesses even if
you're not sure about the economics and the
trick there is to understand what's actually disruptive,
which is a versus a false... And that's
not always a dollars and cents thing that's
on the page. It's it's something that something
tells you that this is...
You know, we invest in 1 company that
I think is a really interesting company
doesn't necessarily have a moat,
but it could have a mode. It's a
company that does aircraft leasing.
Well,
that's a vital cog in how
a lot of airlines get aircraft. Mh.
Remember Darcy you say aircrafts.
And anyway,
they
they,
that it's the financing part of it, but
it's also maintenance. It's figuring out what part
goes where and what's the most cost effective
way to do it? Yeah.
You think
anybody could get in that business. But then
you start looking at the economies of scale.
And the depth of knowing how to go
get your planes and pick things up and
change stuff out, flipping engine out of 1
thing into All of a sudden you realize
that in a sense,
this is what the airline should be doing
for themselves.
And they're doing it. They have become an
integral part of the airlines. Yeah. I'm not
gonna tell you a name that company.
You gotta come in and talk to it.
The the the point is And if you'd
like to. Yeah. It's 85923304
hundred.
You know, but
there... It's just...
The the thing about it investing is that
you have to kinda wrap your mind around
the whole process and then
try things. Yeah. But, I mean, like, with
that company.
You would think that, okay,
private equity will get into this business. You
saw that. I don't know what they're doing.
You you saw that with
shipping containers. A lot of private equity got
involved in that, because that's a it's the
same concept, but it's a much simpler business
simpler. Just this deal. When when some of
these aircraft leasing companies came about, they were
actually spun out of private equity. There was
1 in particular that was spun out of
a. Private equity company.
And... But they're they're not getting in that
business because it's not just about the dollars
to
buy the equipment.
It's it's the network. It's the knowledge of
how to
you know,
change out the parts, all that stuff you
were saying. It it's... That... That's
that's the business right there. It's not the
plane and the parts. It's the knowledge of
how to use it. Well, they look at
a an airplane and they say, is this
more valuable as an airplane? Or a bag
of parts. Yeah. You know? And and they
have an algorithm or something
that is gonna tell them that
and
it's very fascinating.
But they're... See, that's the thing about being
in this business is you get to use,
all parts of your brain. Right? And
if you're just sitting there looking at a
mutual fund, and I got a list of
things that Out,
It's okay,
but
you don't really
get a feel for what your money's doing
and where it is.
See that to me is more satisfying.
And I think when people become disconnected from
their money that they've worked so hard for.
You know, it's a big part of your
life you're disconnected from. And and I think
it's important to know about these thing Even
if you're not...
Thoroughly interested in it.
It helps to know more,
especially when things get rough,
And as your life changes? Yeah. As your
situations change, how does that company...
How does their business and their operations. How
does that fit? Is it repeatable? Do you
need repeatable income? How does all that fit
together? Right. If you would like to learn
all of that,
come see us.
85923304
hundred. You can also schedule an appointment directly
on our homepage at to pre financial dot
com, click the book now button.
You've been listening to the financial hour with
Mike Johnson, Chad S and our host, Tom
Du, we will be back in just a
minute. Stay tuned.
This is Tom D pre.
At pre financial Group. We believe proper management.
Of retirement assets
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platform.
Alright. That's Phil K again.
The that
that is 1 of the most enjoyable.
Guitar,
and we only played the last... And
how about the the chain... Where they swing
it the total time change that's cool to
the
swinging, and I actually heard that
somewhere
that that jam went on about another
15 minutes. Yeah. And that they just... They
had to turn... There was a guy named
Michael O
who was...
Or it might have been another guy
It could've been buck hearing, but somebody was
running the tape machine, and they... They had
to turn it off. But that thing
went on,
that's from a song called time. And it
was recorded in 19 76 Phil Ke, KEAGGY.
So,
welcome back to the time.
Go back to the Tom Show. Joining us,
Mike Johnson Chad Stu I'll host Tom Pre
brought to you by a pre I'm into?
Where we make your money work for you.
Okay.
You wanna do this 1 or... Yeah. So
it it... The the next 2 tie into
what we're were talking about in the first
half. So it it was...
Looking at, you know, using,
you know,
experience looking at what people are doing what
the markets are doing,
1 of the things you're seeing right now
is a lot of money being parked as
just for a number of different reasons, but
in money market funds because money market funds
are now yielding right around 5 percent, give
or take a couple of basis points.
And
Let me add something to that real quick.
That 5 percent is actually nominal, which is
not adjusted for inflation, but even after inflation
money market funds,
are having a positive yield, which they didn't
have for so many years. So that's... I
think another reason why there's so much money
that's gone. It's why people are in. Right?
Yeah. And
So you you you look at look at
the emotion on on that. So
it feels
good, to have money, quote unquote, risk free
sitting there earning 5 percent right now because
you haven't been able to do that in
a long time.
And
So
everybody feels comfortable.
Emotionally, it feels good to be able to
sit it sit there and earn that,
but
the market knows, our listeners
know because we've talked about it. Money market
is of floating rate. So
when
the interest rates go down in the future.
Don't know when that is... Nobody knows when
exactly that's gonna be. I know.
Tell us afterwards. See. Yeah. What let me
answer 1 other...
Let me add 1 other thing.
They see 5 percent.
They think I put my money in and
I get 5 percent on it. Right.
No.
You put your money in and if it
keeps paying 5 percent for a year.
That's an annual number. I've seen people say,
well, here's a 3 month Cd paying 5
percent.
I think that they think
they're gonna get 5 percent
by putting their money in a Cd for
for... 3 months. It's like, at the end
of 3 months, they'll have a hundred 5000
instead of a hundred. Yeah. It's like, no.
It's not how it works Whenever they quote
you a yield,
it's on an annual basis means you have
to have had it in there for a
year. Right. Go ahead. And
So
people are thinking that, okay, once
rates start going down,
then I will do XYZI
will buy a bond fund.
Time. Have plenty of time I will buy
a longer term bond. Yada yada I will,
I will I will. I'm gonna know you
all the juice out of that weapon before
I yeah going with as long as I
can do it. And the... On average... Yeah.
They've done some studies on... This. The individual
investor tend to hold on to
money market about,
18 months.
Act longer than they should.
And it's it's like that with...
We remember the things take. Yeah.
There was a guy
came in here 1 time. I think it's
probably been 12:14
years ago now.
I think he was an attorney.
He had his whole,
41K in cash, several hundred thousand dollars You
know, he gotten out, and I think he
had nailed it on getting out 1 04:08
o 9. Yeah. It was in cash and
and things had gone up,
and he kept saying,
I'm gonna wait for the meltdown to happen.
And he was just... He he could not
be
talked out of the idea.
And so the Dow was probably at, you
know,
8 or 9000 at the time. Now it's
a 40.
I don't know if they got... He never
came back to us So we really didn't
tell him what he wanted to hear. But,
the
mental thing that people do, and it's different.
It's like the first article that you said,
they're not letting their gut work into the
equation. They have bought into this mental
construct of what's exactly gonna happen.
Yeah. And sometimes it's about
admitting that you're wrong. Yeah. That is very
hard for people to do. Sure. Well, and
it's it's...
Admitting that you're wrong,
or but it it what it first... What
you first have to do is actually
examine
why you're taking the actions that you're taking.
You know, are you concerned about politics? Are
you concerned about interest rates? Are you concerned...
What what... What's driving? Are you just even
concerned more...
Emotional. Are you concerned about being broke? Right?
Are you concerned you're not gonna have anything?
Yeah. Are are you concerned
that you're gonna miss out?
On getting more than what you could get
or you're also worried about losing what you've
got. Right?
Those are big emotions. Mh. And I think
they under penn just about every
economic decision that a lot of people make.
Right.
And so if you can identify
what what what the genesis of that is,
then you can start to go in and
question and and and and poke at it.
Ask yourself. I ask yourself. And, I mean,
that's that's what we do whenever we're
talking about an investment or, you know, the
the overall direction of where things are going.
We're we're trying to dis still down
we we we all talk to our customers,
and we know
what they're feeling,
and we're we're watching the markets, we're watching
the investments. And when we're discussing the portfolio,
we're dis instill all that down and into
a... We're workable
solution. What's the biggest
you talk to a lot of people.
What is
the biggest
emotion you see and then maybe the top
3.
The biggest
emotion is
the innate fear of out living your money.
Is is that really that that's that's the
biggest 1. Yeah.
When...
I'll put the caveat,
when markets are bad.
When markets are good,
it's
Fo. You know, why why is
XYZ
stock doing this, and I'm doing this or
fo is fear missing out. And so you
think that
that's really just greed though, disguised is fear.
Isn't it. Yeah. It it is.
It... But it cuts to the same
concern.
You know, I've gotta get everything I can...
Get when think... When the git good so
that I don't which 1 stronger.
Fo when the market's going up, or fear
losing everything when it's going down.
Which 1
Well, a kinda pity that Oh, no. I
I think Honestly, I I think Fo
is be is is is harder
for people to swallow,
because, or or see what they're doing to
themselves. Yeah. Yeah.
I wouldn't have guessed that. Yeah. I really.
I thought he was was gonna say save
Yeah. I I really think it is because
the other...
When when markets are bad,
you're looking at something,
you can explain it though. In this... When
I say explain that, you can say, okay.
This is what's happened in
the market in the economy and this or
that, and there's a reason for it... And
you can explain. And then there's, okay. Because
that's happened. Here's the opportunity.
With the other,
your look... You're... It's more of a important,
projection into the future because you're saying, okay,
this this
asset class or this stock.
Yeah. It's gone way up but here's the
problem that's gonna happen at some point down
the future. And so it... It's fo, it's
it's harder for people I think to... The
the the... Read part of it. I think
that's a harder pill for some people to
swallow. Really? No. That really do.
The other, I mean, when markets are down,
it's not fun for anybody. Nobody likes it
down. I think
for... I mean, me, personally,
I think a down market is harder emotionally.
For me, personally.
But I think for
clients,
the...
Yeah. They tend to kind of in some
ways, almost
not look at it. They... There any denial
something. Yeah. Yeah. And that's,
down market. It's actually made us.
Because we have been able to buy things
in down markets that did extremely well,
you know, over the next,
few years. And
and we... We've been very opportunistic in down
markets over the years,
and it's worked well for us. Mh.
So
you have to assume
what if?
Most of the prevailing
wisdom
is wrong.
Yeah. If you can...
That doesn't mean it's always gonna be wrong.
But if you can sort of take the
other side of the trade,
when it's a slam dunk go in the
other direction,
You've got a chance.
Of it not working the way the crowd
thinks it's gonna work, and then you could
do okay. Yeah.
Well, it's it's
like, with that 1 scenario you're talking where
they were all in cash.
They hit it right,
1 out of the 2 times. So they
got it right to say, okay. I'm gonna
sell before the financial crisis.
And then...
But they didn't buy back in. And that's
what's caught... You you you have to be
right both times
in order for that to work out. And
that gets into market timing and trading and
it's it's it's a binary decision that, you
know, this has to happen. And if that
event happens,
this will be the reality react. If you
make 1 market timing
decision that ends up being right,
you have to be willing to make the
next 1. Right?
You can't just say, 0II
killed it on that trade. And now I
don't have to make any more decisions.
You're now engaged in an ongoing process
of timing the market. Mh. It's time
when you got that 1. Right, now you
gotta make another decision. So... Yeah. And so
circling back to
money market funds.
You know, the the idea of once rates
start coming down, then I will
do this or that. I will buy a
longer
duration bond or bond fund whatever it is.
The problem the market will have already reacted
to rates coming down, meaning the prices of
what you're gonna be buying has gone up.
This is why it's important to have
a portfolio with a long term focus. You
know, we don't know when interest rates are
gonna go down, but in our clients
accounts, we own some longer term bonds. Yeah.
Because
at some point, rates are likely gonna go
down. Yeah. And so it's an income. Even
even if they stay the same right now
for a while, we're getting a nice
yield on those things. It... Yeah. See, this
is why we focus on dividends. You can
be wrong timing wise for a long period
of time, But if you have good dividend
income and you're not
basing everything upon the capital
appreciation side of the deal. You're happy with
the dividend income. Then that you're not a
total loser because, you know, you've you've got
the income. Right. It be laugh about.
I'm laughing because and you're not a total
loser on that. I think the people who
try to market time. I thought end up
being losers most of the time because it's
such a difficult thing to is.
And when you realize, hey,
this is really hard and people who just
put money in a stock market, but put
it in an index fund, have outperformed. To
me. When you come to that realization, that's
when you start getting better returns,
when you're when you're trying to market time,
when you just give up, trying to mark
time. It works well for some people who
are lucky short term. But, you know, the
old saying I... 1 of my favorite quotes.
They're are old traders. They're are bold traders,
but there are no old bold traders. I
mean, it just... It works for a while
and then it stops. So, I I mean,
yeah. If you're in the business long enough,
you come to that realization and you change
your attack Well, I remember years ago, there's
a well known trader named Paul Tudor Jones.
And he he said, ultimately, he was a
big trader.
You, back 25, 30 years ago. Ultimately,
he said, all traders ultimately go broke and
have nothing.
Well, he's like a trillion.
So he's well... He's the exception.
Yeah. He's he...
I well he figured out what
Harry Dent was the... He wrote a book
that got a lot of attention back in
the late nineties about Dow 25000
and everybody thought oh, gosh, he's he's wrong.
Praise. He's got huge fame, but then the
the Dow went up. Well, he's written books
since then that his predictions have been wrong
about. So that's what I'm saying. It's... You,
he can... You can guess right. I mean,
ralph fa and mp, who was a prudential
animal or a a market strategist
nailed the 87 crash, and Yeah. He hadn't
been right sense. You know, There there there
several of those. They used to be a
guy named Henry Kaufman. You remember that name?
Yes. This was back in the Late seventies
early eighties Solomon brothers. When they were affirmed.
Henry Kaufman was this guy that would
predict the markets. This... And everybody listened to
him. Ed K,
a guy with Pain Weber when I was
there. Ed Ke was this You know, they...
They... If he walked into a room, people
would just
stop talking, and he was considered this guru.
And then they fired him. You know, because
he didn't
he didn't correctly
anticipate the 01002,
meltdown in the S and P 500. And
he he didn't tell his clients what the
and he lost his job and all the
trapping that went along with it. Yeah.
Well,
when when you have
down markets or a big up market What's
the market do.
It's going to go up, and it's going
to go down.
Multiple times. III
didn't know you were an economist.
Some days, it's going to go up a
lot, and some days it's going to go
down whole lot.
Another 1 of those tons where we need
video.
I'm sorry. Go ahead. Never. So
when when you have when you have a
a big drop so this year, for example.
The market,
as a whole, it's been a pretty boring
bull market. When you just look at the
SP5
hundred, good ones. Yeah. Yeah. But you look
under the surface and there's a lot of
stocks in the in the market that of,
you know, that are down. In for the
year or flat and... You know, so... But
17 percent of the stocks in the S
and P 500 are down 10 percent or
more. Year to date. Yeah. When this... When
that's why there's a wayne.
Has not done as well with the
lower talk weighted
yeah deal. Yeah. Equal weighted. Yeah. Yeah.
But
when...
You start having a down market, which will
happen eventually, and we all know that. So
when that happens, remember the the returns cluster,
When I when I say that, when you
have volatility,
you... Your biggest down will be followed by
some of your biggest updates.
And that's when market timing gets even harder.
So you could... I mean, you think back
to
the financial crisis 20 20, 20 22,
you... When you have a a big drop,
a 2 or 3 percent drop in a
day,
typically pretty soon after That's when you're gonna
have 1 of the biggest updates. And so
when you're trying to time the market,
you've... We're not talking, you know, a matters
of, you know, weeks here. We're talking... In
some cases, literally matters of hours where you
you would have to be out and back
in in order for that to work out
in your favor. And so
with retirement with retirement investing,
it's all about putting time back on the
investors side.
That's what we try to do with the
investment approach, put time back on the side
because you need regular,
withdrawals
income from your portfolio.
Growth isn't consistent.
And so dividends
income from the portfolio that's much more consistent,
which puts that equation back into more equilibrium.
Me and it gives us cover for not
being good at Market diamond. So we can
just say but go for the dividend. I
remember here in a Traders say 1 time,
you have to understand
that
unpredictability has to become predictable.
So
What a great way to wrap the hour?
You've been listening to the Tom Du show
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