Transcription of last week’s Market Situation Report



This email is a full transcription of Friday's "Market Situation Report".
We all synthesis information differently…and for some text is best.
If you would prefer the video format, you can find it

The Market Situation Report

This Situation Report is about the leading cause of Portfolio Death.

Before I jump into the leading cause of Portfolio Death I want to point
out the two ways that the majority of people in this world grow their

Choice #1: People outsource their money management to somebody
like a big box financial advisor or an independent financial advisor…
usually starting with a big-box financial advisor and then migrating to an independent financial advisor.

Choice #2: People go down the path of do-it-yourself (DIY).

Both choices have their perils and upsides and unfortunately 99% of both choices lead to the same place…portfolio death.

Since most people now know that big-box financial advisors and independent advisors have almost no value, I'd like to spend time on the DIY (Do It Yourself) choice that most people have chosen in one form or another.  

By looking at the picture below, what do you see?


Now the movies want us to believe that the white suburban guy gets in his car and drives down to the inner city, I grew up outside of Chicago, so I'll use Chicago for my example.

So he drives down to inner city Chicago and there is some black guy on the corner with a hoodie selling drugs.  This is how Hollywood portrays it.

In the world of do-it-yourself, when you are trying to grow your portfolio you don't need to get in your car and drive down to inner-city Chicago. Instead you wait for your mail to arrive (both in your email inbox and your mailbox). What you often get are advertisements from these newsletter farms that ultimately give you a steady amount of picks-of-the-month.

You hand them your money and they hand you your pick of the day or pick of the week or pick of the month. It's your daily, weekly or monthly hit.

You get addicted to these picks. You mentally start telling yourself  "I'm just one stock pick away! Just one pick away from getting my portfolio back to what it was in 2000".  It gets addicting. And you want more.

So you just keep buying more and more of these pick of the months…from more Newsletter Farms.

These picks are very well disguised and presented and wrapped.

One of the ways they do it is through kind of luring us in through stories.

This week's Situation Report is really about us and our brains and what we get addicted to.

On the image below (though it doesn't really look like an image in this setting but it is) I went and pulled up some subject lines from some of the emails of the pick of the month and newsletter farms, these are just from eight hours today.

There were about four or five times more than what you see here.  I just wanted to share these few with you.   

Subject lines.jpg

The first subject line sounds pretty good.  I want to fine tune my retirement strategy.  I want to read about that.

Then the "Three easy steps…" one, Well in only three steps?  And of course I want to dramatically improve my investment.  Let me see what that person is selling.

Now here's "One thing you should know about the selloff in gold".  Wait a second, Gold?  I own Gold.  There's a sell off? I need to know about this.  What are they talking about?

How about this one:  "One Country's runaway inflation could create a record-breaking rally in oil".  Wait a second, maybe I should get into oil. 
If oil is going to rally, maybe I should get some oil stocks.

Here is this one:  "World's Largest Collection of Retirement Loopholes".  Well I want to know what those loopholes are.  Maybe I can use some of those in their collection.  I'm going to click on it and see what they are selling.

Then you have "Hyper-compound your way to six-figure retirement income".  Who wouldn't?  I want to hyper-compound my way to a six figure income.  Maybe there will be a super-hyper compound way to a seven
figure income.

Number 7–a fun way to earn thousands in extra income (how-to details expire tonight).  Wait a second, they expire tonight?  I better jump on this.  This sounds pretty good, I mean a "fun" way. I want to earn thousands of extra income and have it be fun.

Now you have "Trader alert: this could be the no. 1 reason to expect a correction in stocks".  Wait a second, I am in stocks.  Do I know what number one reason is?  I know what the number three reason, but I don't know the number one.  I have to get some of that number one reason.

Oh, this "Hidden investment bubble could pop at any time".  I want some information on this bubble pop!  "Anytime", I need to figure this out. 
I can't have this happen to me again. Gimmie some of that!

Another one:   "An election day decision for the stock market".  Wait a second, the elections are coming up.  I live in the United States.  Wait I
don't live in the United States, But I need to figure out what the Election
Day stock market decision is. Gimmie some more!!

Do you see what I am talking about?

There is an addiction going on.  It is the leading cause of Portfolio death.

It's this addiction of jumping around, going to the next pick, and the next
pick and the next pick, its getting drawn in.

That is painful.  I have to admit here I used to sit around and figure out
what subject lines I could come up with to make you read my emails.

I would actually spend a lot of time on this.  I talked to my friend/strategist Sean and I would ask him what I should say this week or how should we
say it.

If you have noticed, maybe some of you have or haven't, but I stopped doing that about six weeks ago.  That is not actually who I am.  I felt like
I sold myself out so I am not going to do that anymore.  No more silly
subject lines.

So much so, that I am even getting rid of my long copy sales letters on
my own website I'm almost done with a very
clean "short" way to present what people get from being in my world.

Again, I felt I needed to do that because that is what the industry was
saying to do.  But that was never who I was.  I am going back to what
I know is best.

So the Situation Report is really about our human behavior and wanting
to find that fix, that one stock pick that will make everything right.  It really
is an addiction.

My next talk will be on the 13th of November online.  Or if you are in
Silicon Valley you can come out in person.

Yes, that is going to be after the election in the United States.  So we
will have a lot to talk about. 

Together, we are growing and protecting your wealth,

RC Peck, CFP 

Fearless Wealth | Investment Independence
Helping Individuals Reach Financial Independence Sooner, Faster, Safer.