Rush-hour commutes on Interstate 95 – through Miami-Dade, Broward and Palm Beach counties – are something like an arcade game.
Cars blast past you at 90 mph, and others putter along at 45 mph. You’ve got two to four traffic-jamming accidents a day, and last week, my wife was parked on the interstate for three hours because an RV caught fire!
Needless to say, no one’s ever learned to be a good driver by watching the crazy antics of other drivers (least of all in Florida).
On the same token, no one I know has ever gotten rich by watching the financial news. Not only does it distract from the bigger picture, but it skimps on real, valuable information.
When it comes to watching the financial news, this is my personal philosophy:
“I glance… only because it takes too much effort to fight the urge. But then I quickly turn my focus back on the road ahead.”
The same could be said about driving on I-95 in Miami-Dade county. The only way to be a good, safe driver there is to follow a few simple rules:
Rule #1: Plot your course, then drive it.
Rule #2: Focus on the road ahead, little else.
Rule #3: Be defensive… so you can live to drive another day.
When it comes to the markets, investors can’t control what happens in Greece. And no amount of financial news will tell you what’s actually going to happen, let alone which investments you should be in through the saga.
Like an accident on the highway… what’s going on in Greece is just a distraction. Disciplined investors know to heed it, then move on. Just as it’s dangerous to focus on distractions while driving, choosing to focus on the ever-changing twists and turns of a financial storyline can be detrimental to your portfolio.
I shared last week how volatility spikes occur more frequently, and are of greater magnitudes, during June, July and August. So I positioned Cycle 9 Alert readers in a play that would not only protect them from the summer’s volatility… but also give them a chance to profit from it.
Mind you, I had no clue whether the situation in Greece would resolve favorably or not. That outcome is clearly beyond my control.
But it was within my control to use data-driven research to plot a course for Cycle 9 Alert readers – one that would protect them from the turmoil in Greece, regardless of the outcome. If you find yourself confused by the news, and looking for ways to profit through the summer and beyond, you can join Cycle 9 Alert here.
Adam O’Dell, CMT
Chief Investment Strategist, Dent Research