There are loads of reasons to change your financial planning mindset. Business has become global. The best brands of the Financial Sector sit facing corners of disgrace. Blocs of nations are mired in intractable confrontation. We must be prepared to live longer in retirement. Paradigms of the past have soured. Here are five harbingers of change that you can use:
1. You need not trade every day. Stock brokers and anchors on business television channels egg you to frenzied deals. Develop the patience of one who fishes. Wait for a real bite. Resign yourself to days of empty baskets. Enjoy the experience regardless of gains or losses of the day.
2. Live with trade-offs. Do not recriminate because an industry leader is conservative with dividend payouts. There is no shame in small capital as long as the Beta is in your favor.
3. Leave the macro to the Fed. It does not matter how much wealth you may have accumulated. There is no point in choosing a growing sector if you pick a poorly-managed stock.
4. Leverage your strengths. Each of us is unique. Everyone with identical qualifications is not the same. All experiences are relevant in specific circumstances. What can you do better than most people? Use that intellectual resource to build your financial estate.
5. Discriminate between data sources. Distrust conclusions packaged by analysts and the like. They probably have axes to grind on your wallet. Be fastidious about collecting unbiased and independent primary data. Draw your own conclusions. Treat survey findings like works of art: get new insights with each viewing.
Change is not just a presidential campaign chimera. Each of us has to roll up our sleeves, and get down to a new dish of portfolio construction with the best stocks.
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