Managing Risk is More Important Than Ever - Sam McElroy #5291
Summary: The markets have hit some rough patches today, but this is ultimately inevitable. I sit down and speak with ___ to discuss these issues as well as how we can address them in a realistic and efficient manner. The economy moves in cycles and it\u2019s important to be cautiously optimistic. If you can maximize opportunities no matter what position you are in, then you will see a great payoff. We are all in the same boat in terms of predicting what the economy is going to do, and it\u2019s important to keep a well-informed, level perspective. Highlights: -The markets have hit a couple of rough patches lately\u2014is this the start of the long-awaited correction? -When markets go one way for too long, they reverse eventually -The economy moves in cycles, and we are cautiously optimistic\u2014which is normal when you\u2019re investing -It\u2019s about maximizing opportunities in whatever position you\u2019re in -People have been generally rewarded for taking more risks in the market and being more aggressive, even though there have been pullbacks -No one has a crystal ball, and we have to read the signs as best as we can -The system will never be perfectly efficient; there\u2019s no singular algorithm -It\u2019s never all on or all off. You need to find the balance based on what\u2019s going on -The key to taking advantage of volatility is having more capital to put down on the market -It\u2019s hard to get in at the bottom, and it\u2019s hard to get out at the top -Measuring success in the distribution phase is subjective. You must ask yourself if you\u2019re reaching your specific goals\u2014it\u2019s going to be different for everyone -You need to continually update your plans Useful Links: Financial Survival Network Stride Financial