Do you ever get the feeling that you’re missing out on something big – and that maybe you need to hurry and catch up before it’s too late?
That feeling has its own acronym: FOMO – the fear of missing out.
The stock market has been one of the hottest things in the news for the last year and things have been getting hotter still over the last couple of months. This means that a lot of people start to wonder if maybe they’re being dumb or lazy while the rest of the world is getting rich.
This is an extremely common human trait, so if you sometimes feel that way, you’re in good company! I’d like to share a classic story to add a little perspective on this, though.
The founder of the Kennedy fortune exited the stock market in timely fashion after a shoeshine boy gave him some stock tips on a street corner one day. Nearly 100 years ago he told the story and commented:
“Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day’s financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929.”
What Kennedy described might sound eerily familiar for our much more modern, sophisticated times. These days it’s probably not a shoeshine boy. More likely things you see on social media that suggest that everyone in the know is making a ton of money by speculating in the stock market.
I’m not here to paint a doomsday scene of an impending stock market crash.
I share this story to remind you of a couple of things:
1). You need a plan. Financial planning professionals can help you develop a strategy to meet your goals – rainy day preparation for unexpected expenses, retirement needs, debt reduction, and fun stuff like vacations. This often includes stock market investments, but it’s important that you make them prudently. Getting professional help is important.
2). Please don’t speculate with money you can’t afford to lose! If you decide to get in the game and play, that can be a lot of fun – but please be sure that you’re not showing up with money borrowed from credit cards or that should be used to keep your other debts current. In a highly volatile market, this can end in a lot of financial distress.
If you feel that you need professional financial advice make sure to find a trusted advisor who can help you evaluate your needs and goals – and help you make rational decisions with your money. This fosters peace of mind and helps you keep your head on straight no matter what’s going on in the stock market news.
Please drop me an email or call if you have any questions – or someone you know is in need of expert advice. I love to help those you care about. If you have a referral please click the button down below. Your referrals are the heart and lifeblood of my business.
Mission San Jose Mortgage
2111 W. March Lane, Suite B100
Stockton, CA 95207