Investing With Clarity™ Blog

Take Hold of the Holidays

December 5, 2014 12:44:00 PM

According to TD Ameritrade, 32% of investors feel worried when they make an investment decision and only 6% feel hopeful when they invest.
Source: TD Ameritrade

Winter is the time to cozy up next to a warm fire, drink some hot chocolate, and stay comfortable indoors. As the holidays creep up, joy and hope seem to be in the air. Children are hopeful that Santa will show up and adults hope they can make it through the season without breaking the bank. As you sit by the fire, are you worried about feeling hopeful in your financial decisions all year long, too? Of course! but it is all about changing your mindset.Nepsis

In my personal experience, I have always wanted all of the available information in order to make a smart decision, whether that means buying the right holiday gift, the right car or picking out the perfect wine. In order to make a good and comfortable decision in the financial world, you need to acquire the right information.

I believe investors should invest like business owners. After all, if you own stocks (or own companies, as I like to say), technically, you are a business owner! Therefore, having the ability to know what companies you own in your portfolio allows you to be a more informed investor. If you can distinguish the root of why you own something, it is much easier to feel hopeful that those companies will bring you the benefits you have been looking for. Three basic qualities we look for when buying stock in a company are, Quality, Undervalued, and Volatile.

Holiday shopping comes with huge crowds and long lines, but aren't the long lines worth the massive discounts? Well, the same goes for your portfolio. Be patient. Have you ever heard that good things come to those who wait? This applies to investing in businesses / the market as well. Now that you have made smart and knowledgeable investments, sit back and relax. Drink your hot chocolate and keep hope. It will take a significant amount of time, however. Hours? No. Months? Still not enough time. Years? Yes, expect a 3 to 5 year timeframe when investing in a company. Look how long its taking to turn yahoo around.

Give your investments the time to make a significant difference in your portfolio. Invest in your investment, by investing your time.

Lastly, don't worry. Be happy. It is much easier said than done, but with the holidays around the corner, try to eliminate as much stress as possible and focus on the things that matter most to you. Do not worry that your portfolio will see movement. There are always safety net strategies for a volatile market such as hedging strategies. Relax! Because it is just volatility and it happens in all market conditions. Be happy that your investments are volatile because you can learn to put volatility to work for you.

 

Happy holidays everyone and stay warm!

-Mark Pearson


Mark Pearson

Mark Pearson

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