A Clue from a Reader.
“I have really taken a big hit in the equity market. I'm better positioned with bond funds now, but still the damage has been hard to watch.”
This note is similar to so many I have received. I appreciate how everyone who has watched their portfolio dwindle feels as I took the big hit when the last big bubble burst of 1970. The company I worked for then was one of the big flyers then and yes we worked mainly for stock options. My 50,000 share option at $1 per share became worth $1,000,000 (I was 25 years old) when the company went public at $20 a share. Of course I did not know anything about bear markets, so when the company went bust in the market crash I was wiped out.
This is when I began to learn that one of the most important reasons why we get caught in this type of situation and why the losses are so painful is that we feel that we have sacrificed out time and lives to have this money. We gave up the here and now for the future and now some feel that their future has cheated them.
This is why the first rule of PIEC investing (Invest in what you love) is so important.
If we invest in what we love, we are more likely to know about it xxxxand make better choices. Secondly, we are likely to put more energy into it and as we learned in this week's messages we create our own universe. If we can get in the here and now and joyfully focus on what we love miracles do happen!
Finally we have no control over what the future will bring. For example in our slow economy unemployment here in Ashe County has been high. One neighbor was lucky and was able to get work up north in Virginia. He was the second person killed by the sniper up there. All we have is the here and now, so instead of investing for tomorrow as all the banks and stockbrokers tell us (we have learned what their suggestions are worth), invest in what you love that brings joy in the here and now. Chances are this will increase your success. Yet if not, a financial loss will not seem like a loss at all.
Until next message, good investing!
P.S. One way to build upon this model is to learn how to have your own International Business made it EZ. Join us at this course our last of the year in Orlando in November.