Wall of Worry

Having trouble letting your winners run?

Perspective helps.


” The thinking is that any time stocks reach a new high it must mean that we are close to a peak that will surely bring the market crashing down. That is always a possibility, of course, but investors in stocks have to remind themselves that they will see many highs in a lifetime of investing. Generally speaking, stocks go up most of the time. A few of those highs will be temporary peaks but most will simply lead to even more highs down the road.

For example, looking at over 100 years of data on the Dow going back to 1915 shows that stocks have had 1,252 highs. That works out to an average of about 12 new highs every year. Assuming the average investor is in the markets for 40 years, that would be almost 500 highs in a lifetime of investing in stocks.”

– Ben Carlson


“Diversification as a hedge against your own overconfidence and inability to predict the future” – Ben Carlson

There are those who will tell you that the most important part of investing is to be comfortable with the risk you are assuming.

That makes little sense to me.  The most important part of investing, to me, is knowing and defining the risk.  Investing is never comfortable.  I cannot predict the future.

How have your numbers been in recent years?

Are you doing better than a simple buy and hold strategy?  Are you content to do worse in order to have some sense of control over the future?

These are questions worth pondering.


Looking for Longer Term Holdings With Income?

The following stocks are on my buy list.

The charts look solid, they pay a respectable dividend, and you can hold with a doomsday stop in case the world falls apart, as it did in the financial crisis 10 years ago.

Remember those days when you could get 5% just for parking dough in a money market account?

Those days are not coming back tomorrow, but some of these holdings are a good substitute.