Month: April 2020

A person live way through his system.  The guy can set a goal as a jewel and fall astray to be seen as the fool.  Goals are for losers. A goal set 30 days away must be lost 29 time before achieving that goal – if the loser is able to achieve it at all.  To focus on the future is a lofty bit faulty.  This would steer away from the present and away from your initial intention of reaching your goal.  The paradox is real and the failure cycle persists.  Only in the mans own conviction and burning desire of achieving his goal will he succeed after failing each day until then.  The man with the same conviction and burning desire could achieve his goal with more enthusiasm and victory than the former.  A system will incorporate repetition and consideration and allow time away when the aim isn’t practical in the present.  Focus win in the system.  The man carrying the distraction of a goal will fail many times and may never succeed at all.  The person with the system has focus, conviction and application of repetition which will spawn success and success leads to motivation and motivation leads to more success. The snowball is just as real.  More present; less distracted.  System is to win and goal is to lose.  Repetition and muscle memory are in the systems repertoire.  

The best real estate prices are in a depressed market.  As people are frantic with media and frozen with economy the time comes to gain from the short sighted individual.  The person that is ready will be unscathed by the invisible claws of social economics.  Real estate sees its true value when the initial buyer defaults in his mortgage.  The buyer defaults the bank take control and the downed market coerces the bank to show humility and accept, to the benefit to the forewarned buyer, a lofty discount to his new home purchase.

“Where do I go from here?” Says Alice.  “Well that depends on where you want to get to.” Replies the cat.  – Alice and Wonderland.  

A down market crushes the unready.  His mortgage default because of ill saving.  Blind of direction.  Reduction of hours or termination of employment occurs spontaneously.  The hypochondriacs show themselves in a sheep like fashion they find him to consult.  The rabbit hole drives deeper for the unfortunate soul when the government gives money controlling him further.  This cages the dependent man as he falls apart financially and emotionally.  Inevitably giving way to his foreclosure and bank takes back control of the house that was never truly his.  

The banks act as strings of a puppet greedily pulling as much as they can when they can.  The banks are the market movers and tricksters.  When the bank has its final pull it clutches what is officially theirs then passes it off to the next person.  The next person is often not a person at all but a collection of people who all follow in the sheeplike heard ready for slaughter.  The bank indiscriminately pulls what is able without ever considering why or if timing is correct.  In Edward Chancellors book The Devil Take the Hindmost, Edward goes back to the 1600s to illustrate the irrational and slow thinking of how the banks operate.  This goes to abyss when the bank get sacked on being too greedy and suffers from other sins of jealousy and envy.  As the bank pulls what it can from the unprepared the bank sets a darkness around the economy that only the astute investor is prepared and like a hunter he waits for the best shot.  

As the economy mopes and ideally stands by the buyer starts to actively search for new modes of profit.  The buyer reaches a point of genius when the conviction from his thoughts drive the population to do business with him.  From a book (i don’t remember which one), recognizes it’s best to be the third buyer of your house where the first is the initial buyer the second is the bank and the third is the buyer looking for the deal.  In a prime market, buyers are looking for a similar deal and some need to be abandoned as the price becomes too close or slightly above the market value.  However, once the depression strikes the time calls to where there are many more houses to buy with less buyer to drive up the price.  This is where the long-sighted buyer truly finds his dream home.  A value the could be consulted to a propitious future or a sweet deal for the hustler on the side. 

The initial buyer defaults the bank takes back their home and a version of a hero appears.  This pattern isn’t new.  It has been done repeatedly.  The pattern will most likely happen again.  Will people be ready? Or lazy in their fortune? People suffer and others prosper. For any prosperity someone else falters.  This is the pattern of history.  Like Edward Chancellors book on financial speculation, may devil take the hindmost. 

Three steps to survive and capitalize on the bear market swings.  This summary will help to take advantage of reduced taxes, reinvest your money, and clean out all the junk in your investments.  

First, see the collapse and if your profits are now losses it is time to sell. Sell your losses and note your losses so you may recoup a tax benefit up to $3000.  Then when the dramatics of the bear market seem more level now it is time to act.  Look for Total Stock Market Index following funds like VIT – Vanguard Index Fund.  When it’s time to invest into a different fund do it incrementally and consistently.   This is because the more the market drops the more stocks you will be able to buy. Conversely if the market climbs you would have your money already for you.  This idea has been coined dollar-cost averaging by Benjamin Graham; author of Intelligent Investor and Security Analysis.

Second it is wise to covert your 401k holding into a Roth IRA.  This is because you will pay less taxes.  The difference between a Roth IRA and a 401k is that the Roth funds get taxed prior to the investment.  This works excellent when the market is depressed because you will be taxed less on your holdings.  There is no penalty to convert from a 401k to a Roth IRA and there is a 5,500 yearly maximum of conversion. When it time to collect funds from the Roth IRA they will be tax free. 

Third you may sell your dog deals. It seems Gordon Gecko from the movie Wall Street played by Micheal Douglas dubbed this term as companies that you do not care to follow.  This is the chance to release them without getting slammed on a capital gains tax bill.  This is the time to clean up your portfolio.  Like fasting to reestablish your good gut bacteria, a bear market is the time to reestablish your good security holdings.

Three steps will help you survive and capitalize on a bear market.  Always take advantage of a depressed market because market shifts are irrationally dramatic.  Be optimistic during bear markets because all the stock are now on sale and up for grabs.