The Art of HOLDing

This might sound crazy.

I actually made some moves in the market this week.

What exactly you ask?

Well after reviewing my allocation I realized I wanted to increase my exposure to growth stocks.

To do this I went ahead and added to two existing positions in my traditional brokerage account, QQQ (tech) and ARKG (genome).

In other news, I just got back from California after visiting a friend in LA.

Overall it was a great trip.

If you total the amount of money in cars that I saw it’s likely more than I’ll make in my entire lifetime.

Here is a cool night time picture from the LA hills.

With the side news out of the way let’s get into the topic.

Last week we closed the email out “time in the market > timing the market.”

This week we are going to expand on why that is true.

Note: If this email is appearing in your spam you can fix that by dragging it to your main inbox.

This is easily one of my all-time favorite quotes.

“Not everything that can be counted counts, and not everything that counts can be counted.” --Albert Einstein

That WTF Feeling

It’s definitely easier said then done.

Why?

Because the market has a way of making people question their investment thesis.

Confusion, uncertainty, and doubt often forces investors to make moves that aren’t aligned with their strategy.

We’ve all been there thinking “WTF” is the market doing.

Why We Hold

The difference in staying invested over the long term can have a tremendous effect on your returns.

So next time you are thinking about trying to time the market, go ahead and chunk your phone across the room.

Okay maybe just walk away from the screen…

Here is why.

Fidelity ran a model that analyzed the growth of $10,000 invested in the S&P 500 index from January of 1980 to August of 2020.

The study analyzed what would have happened to your returns if you missed just a handful of the best days in the market.

What they found might shock you.

By missing just the 5 best days in that time frame your overall return drops 38%.

That’s a $360,000 mistake.

It doesn’t take a genius to read this graph and see just how costly trying to time the market can be.

Lesson Here

Avoid trying to pick a top or bottom.

Your emotions will try to convince you that you can, but block it just like all the crypto nerds on Twitter.

After all, you are an Always Invested subscriber.

We it comes to HOLDING, there is no one better.

One of my favorite brokerages for long term investing is M1 Finance.

Advantages of their platform:

• Clean interface

• Easy-to-use design

• Supports fraction shares

• Let’s you open both traditional and tax free accounts

Sign up with by clicking the link below and we will both get $30 when you deposit your first $100.

Felt like throwing a few extra memes in this week.

Laughing a little more never hurts.

Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you next week!