My 11 Commonsense Rules to Live By
 #1. The next time you hear an economist-type say “it’s different this time”, suggesting the prevailing trend will continue ad infinitum, know it to be the best indication that the trend is about to change…
#2. The next time you think the financial world’s coming to an end, understand that if you’re right, it doesn’t matter anyway. It’ll take the end of the world as we know it to end the financial world as we know it…
#3. The next time you see someone on TV predict the market’s near-term direction, stop and wonder why he’s on TV and not cruising the Mediterranean in his 400 foot yacht – or – why you didn’t see his name on Fortune’s list of the top twenty richest people in the world…
#4. The next time you let the market scare you sleepless, reduce your exposure; you have too much in the market – and you need more sleep…
#5. The next time you’re tempted to call the 800# of the guy on your car radio who guarantees a risk-free 11% annual return for the next 7 years (I just heard this one by the way), take a peek at yourself in the rear-view mirror and say “am I a sucker or what?”
#6. The next time you’re inclined to buy gold from the smart-sounding British lady on the tely, get off the couch, walk to the bathroom, look yourself in the mirror and say “em I a bloomin saka or wōt?”
#7. The next time someone tells you his equity-indexed annuity or market-linked CD will give you stock market returns with zero risk, and you find yourself believing him, politely excuse yourself, walk to the bathroom and…well…you know the drill…
#8. The next time you feel panicky after the market drops 20+% in a day (10/19/87) or in a month (2/9 to 3/9/09), think back to October 1987 or March 2009 and ask yourself “what would have happened had I bought right after those drops?” I.e., never panic when you’re feeling panicky (the only good time to panic is when you’re feeling safe)…
#9. The next time you think “people can get rich quick in the stock market”, know that whether or not you’re right makes no difference, just know that it ain’t never gonna be you. I.e., don’t try to get rich quick in stocks – or – try it with money you can afford to lose. Cause I assure you, you’re gonna lose…
#10. The next time you think a single politician can really do long-term economic damage, know that history proves that the health of the economy is the major determinant of election results… I.e., if he or she begins screwing things up, he or she is toast…
#11. The next time you read here that investing in a manner consistent with your temperament and time horizon is the absolute best way to approach your portfolio, and you believe it, look yourself in the mirror and say “am I a smart cookie or what?”
Have a great day!
Marty
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