A Simple Way To Stay Disciplined

Apr 19, 2021 | Investing

The financial markets continue to move and with that investors may have a portfolio that doesn’t match their goals. Karl Eggerss was on the Trey Ware Show discussing a simple technique for staying disciplined.

Trey Ware:                         Creatingricherlives.com is where you’ll find Karl Eggerss. And he’s here every Monday at this time talking about our money news. So what is the money news today, Karl? What’s up?

Karl Eggerss:                      Well, we got a report last week and March was the second best ever for retail sales in the month of March. And that was second, only behind May of last year. So in the last year, we’ve seen like two of the top retail sales months ever, and so it’s creating a huge backlog. Anybody that owns a business or is trying to get supplies to build a home knows this. And those are all good things, but you and I have talked about lumber prices are up about five fold since the pandemic. And so, I would just encourage everybody right now, we’re seeing this. Really look at your portfolio and understand are you investing in those things that are going up? Because if you’re not, then you can fall behind it.

See, the whole key with inflation as we’ve talked about is that it does make things cost more for us than we use. But if you can take your investing dollars and somewhat heads yourself by investing in that, that’s really the key over the longterm. And so I would just encourage everybody, what do you own right now? Make sure that you are staying disciplined because we’re starting to see, Trey, insiders at major corporations are starting to sell their own stock a little bit. So we could be getting ahead of ourselves in the short term. And so, I’d really just encourage everybody to look what they own and make sure they’re staying disciplined in terms of rebalances.

In other words, if somebody had 50% of their money in stocks a year ago, and now it’s grown to 70% of their money, they may need to rebalance. And everybody’s situation is different, but you can’t sit there and just let it go on its own. You have to pay attention to it because otherwise when corrections do happen and they will happen, they can be more painful if you’re not staying disciplined with what you own in your portfolio.

Trey Ware:                         Very good advice. Thank you, Karl. Karl Eggerss from creatingricherlives.com. That’s where you’ll find him at every Monday morning.

 

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