As investors, we have to separate what we want from what we have.
As the old saying goes, “You have to play the cards you’re dealt.”
In other words, some people want to invest in a world they wish we lived in, or in the world they think we should be living in.
But the only way to make money is to trade and invest in the market that actually exists.
This is hard for some people.
Good.
That just presents more opportunities for the rest of us.
Virtue Signaling To Zero
The delusion is real.
“Markets are only up because of the Fed. That’s why I’m bravely sitting out, losing money on purpose – someone has to hold the moral high ground.”
I wish I were exaggerating. I’m not.
Here’s the thing: Some investors can’t separate politics from portfolios.
They don’t like the president, they decided he’d be bad for markets, and they swore off stocks after the election, maybe after tariff talks this spring.
And what happened? They missed one of the strongest rallies in history.
That’s not discipline. That’s weakness. They let personal beliefs override price action and data.
And, in this game, that’s fatal.
How many investors get upset when they see the total U.S. debt numbers exceeding $37 trillion?
These might look like scary numbers.
But had you used this information to get out of the stock market, that makes you just as bad as all those short-sellers and non-participants who hated Trump.
How about valuations? Here’s a chart that’s been making the rounds this week, attempting to show U.S. stocks are too expensive to own.
Believing that has cost investors a ton of money:
It’s not that the market doesn’t care about anything, despite what some frustrated folks like to say.
It’s that what the market cares about is far more important than what you think it should care about.
For example, the market isn’t interested in your opinion of Fed policy – it reacts to its own set of priorities.
Worry About Yourself
The way I was brought up is to be a gift to other people.
“Men for Others” was actually my high school’s motto. It’s more than just a slogan, it’s a philosophy and a way of life.
I appreciate that more today than I did when I was a kid. I get it much more now, and I like to live my life that way.
But none of that is true in the market.
In the market, it’s everyone for themselves.
That’s a tough adjustment for many of us, since in most other areas of life we’ve been taught the exact opposite.
The truth is, what other people do with their money is not your problem.
This is where you focus on what you’re doing. How you’re helping your clients, or your family.
This is a selfish endeavor. Don’t forget that.
I like to think of it as if I’m watching an obese person sift through the cookie aisle at the grocery store. Are you going to stand there all day trying to stop them?
How about the folks taking a few shots of whiskey at the dive bar on a Tuesday at 11 a.m. before heading back to work?
Are you going to stop them? No.
When you’re at the grocery store, get your meats, get your veggies, and get home to your family and cook them a nice meal.
Same thing with the alcoholic. What are you going to do?
Get your coffee at the place next door to that dive bar on Lexington Avenue in New York City, and get back to work.
Don’t worry that you just watched your colleague walk into the bar, and without him even asking, seeing the bartender pour him three shots and hand him a beer, as if they’d done that every day for years…
Your Job Is To Make Money
The bottom line is this.
Our only job as traders and investors is to make a profit.
It doesn’t matter if the company makes computer chips or potato chips. It could be Oil & Gas or Solar power. Crypto or Bond ETFs.
Who cares?
The only way we get paid around here is to sell things at higher prices than where we buy them.
So many people forget that. But it’s our only job. Go do it to the best of your abilities.
And don’t worry about what other people do with their money. That’s none of your business.
Just like it’s nobody’s business what you do with your money.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs