Buying Lower is Good Too!

This is an incredible time in the markets, something I have not seen in my forty-five years in the business. It’s investing wrapped in gambling bundled in an annuity and fees don’t matter since everything goes up every month. I do not believe the kids today realize how good they have it. Everybody is smart, life is good, debt doesn’t matter and we are on the verge of curing cancer with a soon-to-come Al doctor. This truly is a remarkable period in human existence, and I wish everyone well and hope you enjoy this time we are experiencing. As for markets, how long can the roughly ten stocks that are keeping this game going continue to hold everything up is anybody’s guess,

but it is fun while it lasts. As for buying lower, with SpaceX coming public soon don’t expect any of that. FOMO is the investment strategy of the day in a market that is running on fumes.

I have a client/friend that I try and explain that if you could build your own efficient investment experience based on when you were born and the years spent accumulating assets you would want the market to trend tower every year during your accumulation years and then the minute you retire trend higher every year after that. Problem solved…buy low, sell high. Of course, it doesn’t work out like that but the point being that buying lower does make sense._ I know, I know, markets go up every year so why the hell am I wasting your time. But seriously, in the event markets ever do drop it would be ok to accumulate shares at lower prices. Sounds easy…but it isn’t, because it’s not tun.

So, in the same vein I have a cousin that worked at Intel for many years and is retired now. I have felt guilty over the years as I advised him early on to load up on Intel stock. I don’t know if he remembered me saying this, but I remember and it has bugged me over the years since Intel was really dead money for decades as an investment. Then, to and behold, Al came to town, Intel got in bed with the government, along with Jensen Huang who is Nvdia’s

CEO, and BOOM. So I don’t know if the cousin holds any shares at this point (or if he ever did) but the concept of having an asset go down every year until you retire then shoot up after retirement played out in spades with Intel.

Oh well, it doesn’t matter talking about stocks going down I suppose. Only a dinosaur from the 70’s would worry about that. So let’s see…what should my next ‘investment’ be? Get me the odds on Elon Musk having babies with robots. Seems like a lock.

See you next time. Enjoy the summer!