Applying Zen to Today’s Stock Market (Part 2 of 2)

“You put water in a tea pot it becomes the tea pot.  You put water in the cup, it becomes the cup.  Now water can flow, or water can crash.  Be water my friend, be water.”  – Bruce Lee

 

 

PART 2 OF 2 PART BLOG

(PART 1 is here:  http://thestrategicmile.com/2009/10/13/applying-zen-to-todays-stock-market-part-1-of-2/)

So I left you with this last week:  

“The bottom line is this, a retirement crisis looms for boomers, young, and old…..UNLESS one begins applying the Beginner’s Mind to retirement and investment strategies.”

How do we do this?

In his movie, Heartbreak Ridge, Clint Eastwood led a team of elite Recon Marines in the Invasion of Grenada, codenamed Operation Urgent Fury.  The mindset that he drilled into his Recon Team was this:  Adapt, Improvise, Overcome.  This is what would give them the advantage on the battlefield.

We can apply the same philosophy to investing in the stock market.

1. Be flexible.  No one knows what the future holds, so why lock yourself into an investment for the indefinite future.  Don’t be “married” or loyal to your investments.  Be loyal to your investments to the extent that they are producing robust results…better than their peers!  Ideally, with less risk.
2. Adapt, Improvise.  The stock markets and global economy changes.  Build a system and a discipline that allows you to follow market leadership.  We use our proprietary computer-driven mathematical model to adjust our portfolios’ sails in order navigate the ever changing winds and currents of the financial markets.  Remember the game “Leap Frog” that we used to play as a kid.  Think of investing as being similar.  Keep your dollars leap frogging towards those areas of the market showing the best leadership.  It is important to note, that most mutual fund managers are locked into their own style of investing.  Consequently, a great Domestic Large Cap (Company) manager will more than likely not be the person to invest money with when Small Cap Emerging Markets are where all the momentum is.  Be opportunistic and find bull (rising) markets wherever they exist.  There is always a bull market somewhere.  It may in the broad equity markets, it may be in bond markets, it may be in a particular sector only, it could be in precious metals and commodities, maybe real estate investment trusts, or it may be a mutual fund that goes up when the broad market goes down.  Your job is to do your due diligence and find these markets.  Your dreams and goals are counting on you!

If you want to learn more about our methodology and philosophy, check us out at www.richinvest.com

Best returns,

Matt