Feeling Great, Good and Bad about Investment Performance

"It's hard to make predictions, especially about the future." ~ Yogi Berra

Feeling Great

In 2019, I began trimming our equity investments due to the yield curve inversion, which historically has preceded a recession and bear market.   Admittedly, I missed out on some 2019 gains and early 2020 gains, but I experienced much less pain when the market crashed in March 2020.

As a result, I did not sell any stock holding during the bear market decline of March 2020.   We held every share down to the bottom.

Feeling Good

We bought some additional shares in late February and early March.  We did most of our buying up to March 23, 2020.     Some shares bottomed later in April and we bought those companies until then.

I sold many of the shares purchased near March 23 on the rebound,  after 15-25% gains, sometimes in less than a few days. 

Feeling Bad

I was expecting the decline to go further and the recovery to take longer.   Thus, I didn't buy large quantities.    I also didn't hold the shares long enough, missing out on 50, 100, and even 200% gains.

In addition, I avoided buying growth stocks that had fallen significantly, e.g. Shopify, Tesla , which I had owned before and sold.   Those stocks are now significantly higher than their pre-COVID hights.

In Conclusion

Overall, we did OK.   Our total investments are slightly above the beginning of the year, and are close to the all time high in February, 2020.   However, I still feel bad I missed out on the opportunity to buy more stocks that ended up doubling, tripling or even quadrupling their March 2020 low.

For more on  Reflections and Musings, check back Saturdays for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Set My Financial Goal Too Low

When I was growing up, becoming a millionaire was considered an aspirational financial goal.  Very few people had a million dollars  and my parents bought a new house for $28,000.  A million dollars seemed very unattainable.  In 1965, there were 100,000 millionaires in the US.

Today, a million dollars seems much more achievable. In 2020, the there are over 18 million millionaires in the US.   That house I grew up in is valued at $421,000 on Zillow.   Many families have dual incomes, leading to over a million dollars salary over their lifetime.

I should have set a $100 million as a financial goal.   In 2020, there were about 80,000 households with over $100 million, which is close to the number of millionaires in 1965.  $100 million would have been a appropriate inflation adjusted goal.

For more on Reaping the Rewards, check back  Fridays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

The Opportunity of a Lifetime

The youth of today have been handed a gift.    With all the turmoil, there is a great opportunity for future success.   Yes, there will be winners and losers.  Losers will be the status quo.  Winners will be the change agents.

Be agile, be adaptable, be ready for change and be a winner.

For more on Crossing Generations, check back Thursdays for a new segment.

This is not financial nor skills advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Usual Market Drivers Not Working

This stock market does not make sense to me based on the usual indicators that I'm used to.   There is too much optimism given the looming issues, including unemployment, recession risk, looming evictions and COVID-19 resurgence..   

Maybe this time is different.

Fed monetary support and Federal government intervention is keeping the market and economy from falling. 

The U.S. is mostly a service sector and much less a manufacturing sector.

The future is much brighter than the risks forecast.

Maybe it's just because I'm old and old school and the old indicators are no longer valid. If the market keeps going up the rest of the year, it may be time for me to quit managing our investments:-)

For more on Crossing Generations, check back  Thursdays  for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Let's Fully Open the IRS

I'm a frustrated taxpayer.

I submitted my return by mail in mid April 2020.  Where's My Refund app does not yet acknowledge receipt.

I finally was able to talk to customer service at the IRS last week and was told that the offices won't be staffed to work on mail returns until August 1, 2020. 

Please get the IRS fully open soon so that mail in returns can be processed.

For more on  Ideas You Can Use, check back  Tuesdays for a new segment.

This is not financial, pandemic or tax advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Either a Buy-the-Dip Day or a Stop-Loss-Selling Day

Tomorrow, either traders will buy the dip and keep the market from falling, or stop loss orders will be executed and take the market down further.

I'll be prepared for either scenario.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial nor investing advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

One Investing Theme

I've been looking at some of the stock with rocket recoveries since the March 2020 bottom:  WIX, SHOP, SQ and others.  A common theme is that they are companies that can positively impact small business operations.   WIX is a website tool for small business.  SHOP works with small businesses for online orders, including websites.   SQ is a payment processor for small businesses. 

Probably too late to buy now, but worth considering if/when the market pulls back.

Full Disclosure:  We own shares of SQ at the time of this posting.

For more on  Ideas You Can Use, check back Tuesdays for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Letting It Ride

The stock market is on an unbelievable winning streak.  Despite my skepticism, who am I to dispute the results.   So I am moving from a bias to sell to a bias to hold.  No buying yet.  I still think there will be a time in the future to buy at lower price.

I expect there will be a pullback correction in the next few months, given the uncertainty of COVID-19 spread and the impact of a Biden Presidency.   I expect to put some additional funds into stocks at that time. 

Until then, I will patiently wait for the pullback, though I am itching to buy into this rally. 

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Market Trend is Up

While I am still skeptical of the current market rally, I admit that I am wrong short term.   The market is definitely going up in the near term.   There is a lot of optimism for a return to pre-Covid19 days.  Til proven otherwise, I am putting my selling on hold and riding the upward wave.

In particular, I will be watching Workhorse (WKHS), which we have owned since 2014.   It dropped as low as 46 cents in 2018 and had 2020 low of $1.37.  Last week it hit an all time intraday high of  $22.90.   Amazing and unbelievable.   I have open sell orders at $30, $50, $99, and $200.  LOL  If they execute, I will know irrational exuberance has taken over the market.

Full disclosure:  We own share of WKHS in our personal account.

For more on  New Beginnings, check back Sundays for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

An End and A Beginning

All my life, I've been working towards a financially sustainable retirement with a comfortable/conservative margin of safety.   I've been consistently frugal, living below our means, and maximizing savings through coupons, sales, deals and minimizing tax liabilities.  I've been a ruthless detailed numbers person, evaluating different options and scenarios, and sweating through the 08/09 recession and the 20 recessions while in retirement.

We're on track to achieve that margin of safety in this year on in 2021.  Barring a major financial disruption, I expect we can easily maintain our current lifestyle even with 3% inflation per year for the next 22 years.   Probably even for double that many years, but I haven't done the detailed analysis.    This includes putting 2 kids through college debt free in the next 15 years.  I can probably back off day to day managing/scrutiny of our retirement investments... unless there is a major event such as elimination of Social Security, high inflation, or a long term market crash.

Now that the financial part is mostly done, what's next?

Next is determining how we want to enjoy a financially sustainable retirement.   I want to give this some thought and discussion since we are shifting mindsets from how we got here, e.g frugal, living below our means, etc.  To me, I think we are more likely to run out of time than out of money.  So I want to answer a couple questions to start.  What do I want to spend (more) time on doing next?    How do we want to spend money to give us more time?    For me, that will be the beginning of a new chapter in our retirement journey.

For more on  Reaping the Rewards, check back  Fridays for a new segment.

This is not financial, retirement, investment nor life advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC