There are some wrongs that continue for so long, that their proponents can live an entire lifetime, completely convinced that they were right.
Take the old fable about the man who jumped off a building, thinking he was invincible.
As he passed each floor on the way down, he'd yell to the people inside "See? Still alive!".
This continued at each floor until he finally hit the pavement and died.
Now, this is just a fable to illustrate a point, but people commit these same kinds of mistakes in real life — and on much longer timescales, too.
Take the USSR. That empire lasted 69 years, from 1922 to 1991.
Which means that it was entirely possible for a generation of Communist adherents to wholeheartedly believe in that philosophy — to live and die under that regime — thinking the entire time that it was a working, functional society.
They were right... until they were wrong.
But the "right until you're wrong" scenario doesn't just show up in fables or bogus political ideologies.
It's happening right now — and has been for the past 40 years.
Because investors like Warren Buffett have been screaming from the rooftops as loudly as possible that the best thing for everyday investors to do is to buy into an index fund, and then ignore it until retirement comes.
Others, like the FIRE community (Financial Independence/Retire Early), claim that it's impossible to know where the market is going to go, but that over the long term, markets always go up. So just keep plowing money into index funds, without any regard for value.
Well, if you've looked at any FIRE groups lately, you'll see a bunch of scared people running.
See, they — like most investors alive today — have been trained by the last 40 years (and especially the last 10 years) of "always up" markets to believe that "up" is the only direction that markets go.
But it simply isn't true. Markets have experienced prolonged sideways and downward moves.
And anyone who blindly followed the "buy and hold" advice found themselves washed out.
The transition from "always upward" markets to a prolonged high volatility period we're entering now is turning out to be ugly for those who thought "buy and hold" was the be-all, end-all of stock market wisdom.
When the market has a big rally one day and turns around to give it all back — and then some — the very next day, as happened at the beginning of May, all the “buy and holders” are really just spinning their wheels.
As for me? I've been working my plan and seeing tremendous returns — despite the way markets have been moving over the last few months.
If you've ever looked at a volatile chart and wondered what it would be like to trade not just on the quick rallies, but also on the sudden downturns… look no further.
That's what I've been doing with my
21st Century Wealth Society members.
We’ve been working our plan with quick “hit and run” tactics, trading and taking what the markets give us.
You are free to join us here. Or if you want to see more about what we’re doing, I invite you to
watch this video. It’ll explain what I’ve been seeing in the market and how my strategy has allowed me to trade in these chaotic markets.
Hope to see you in the group.
Take what the markets give you.
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