With Friends Like That… Who Needs Enemies

I’m very particular with whom I let my two kids hang out with.

Before they can go to someone’s house I have to “interview” their parents. Of course the parents don’t know I’m doing this, but I can get a very good idea of what their real parenting ability is [when I’m not around] by asking a few questions.

My questions have to do with how “checked-in” the parents are.

If the parents don’t regulate video/screens at all, then it’s a no. If the parents aren’t able to regulate their kids in public (you’d be surprised), then it’s a no. If the parents talk to me with one eye on me and one eye on their phone the entire time, then it’s a no (you wouldn’t be surprised).

So it wasn’t too long ago that my youngest wanted to play at one of her friends houses. And in this case I had already been to his house.

I didn’t need to go farther than the front door or meet any parents. The place was a mess. The yard was a mess. The cars were a mess. The lawn was a mess. Everything was a mess.

It was a no.

If she wanted to play with this particular kid, it was going to happen (if at all) at our house.

All good parents are careful about who they let their kids hang out with.

As this can be the difference between your kid leaning some colorful new words and habits too early or becoming more stable/thriving little people.

BUT the same isn’t true when it comes to who adults let their money hang out with and listen to.

Tell me who your money listens to
and I can tell you how your future will turn out.

Most research around this idea has been about who people spend their time with, but I replaced “your time” with “your money” in the following quotes.

Your money is the average stability of the five people it listens to most.

The actual quote by Jim Rohn:

“You are the average of the five people you spend the most time with.”

Or perhaps it was better said 170 years earlier by Goethe, Tell me with whom your money consorts with and I will tell you your future stability.

Actual Goethe quote:

“Tell me with whom you consort with and I will tell you who you are.”


Or maybe Harvard’s social psychologist Dr. McCelland, The voices your money habitually listens to will determine as much as 95% of your growth or lack thereof in the markets.

Actual McCelland quote:

“The people you habitually associate with determine as much as 95% of your success or failure in life.”

The fact is, who your money listens to matters most.

Is your money listening to hype-based, drama-based and BS-based voices found in the pick of the month newsletter world?

Or is your money listening to a big-box advisor that is following a script that was created to work in the 1970’s?

Or maybe it’s a calm voice that says, just keep buying because the market will always come back AND you can’t predict the big market falls.

But it’s listening.

And if you know how to listen to what your money is trying to tell you, you can quickly learn if its hanging out with the good crowd or the bad crowd.  

And just like the kid who spends time with other kids who don’t want to go anywhere in life, if your money is following the voice of 1970’s Big-Box Advisor, I can tell you it probably isn’t going to know when to step aside when the next recession rolls in.

While adults (read: investors) can understand this about their kids (if they are paying attention)…

…what adults don’t understand is that their money might be listening too and following other adults that don’t understand how the markets today.

These voices influence your money’s growth or lack thereof by consciously or otherwise following the wrong views.

Which can sometimes have dire consequences at worst, and best, eat up a big part of your life and stability.

So it wasn’t a surprise when a long time reader sent me a note that he got this week from one of the biggest pick of the month newsletter voices.

You see before he met me he became a life-time member of one of these newsletter clubs. He paid something like $5,000 or $6,000 for lifetime access to a whole list of voices. And since he can’t get his money back he sends me notes from time to time that continue to enforce how flawed the “story-based” investment approach is that they push.

The note he sent this week came from Stansberry’s Investment Advisory. They had sent out an alert saying one of their “pick of the month” stocks had fallen by 30% in one day.

I want to show a price chart that shows you the stock in question being divided by the exact sector the stock is part of.

The turn around story is Biogen (BIIB) and the sector is the Biotech sector.

If the black line in the price chart below is falling then Biogen is underperforming the sector its part of (read: skip it).

After all, if a stock can’t even outperform the sector its part of then why even own it? Why take on that risk? That doesn’t make sense.

The turn around story is story about people losing money. It’s like getting on a bus heading south out of town hoping the bus will turn around and head north… why not just get on the bus that’s already heading North?

Here’s the price chart. And the direction is clear.

Most people don’t even realize who their money is hanging out with.

If they knew that amazingly worded story wanted their money to hang out on this price chart they might have thought twice about it.

Would you let your kid hang out with this price chart??? I wouldn’t either. I know latchkey kids don’t have a choice. But your money does.

And the good news is you can change this at any moment.

Your money can start to hangout out with and listen to the right voices. This is accessible to everyone.

I’ve built an approach so that your money can listen to what the market is trying to tell you and not well-crafted stories. And by knowing how to listen to the market and what your money is trying to tell you, you get what Jim Rohn, Goethe and Dr. McCallen say matters most…  if you hang out with “better” people you lead a better life.

But what you decide to do with this choice is up to you.

So choose wisely because it will determine how well you sleep. Where you vacation. How long you have to work. Whether you ever have to go back to work or not. And the quality of your daily life.

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

PS – Whenever you’re ready, there’s three things I can help you with…

  1. Do NOT lose half your money [again] in the upcoming recession.
    Whether that recession happens in late 2019 or 2020. A recession is coming and stock markets have a history of falling 40% to 60%. But your account doesn’t have to.  We can help you make sure your money is on the right side of the market. Click here.
  2. Does GOLD matter if the stock market breaks out to new highs?I just posted two very in depth gold videos in the members area. I look deep into gold’s price and price history and show exact points where you’ll want to possibly think about “backing up the truck.” And where we are today. And what signal to watch for specifically. I even include a couple individual stocks for people that find the need to own stuff like that. Just log into the site and go to the Portfolio page, its below the Model Portfolio.
  3. Your portfolio has leaks… When will you get a second opinion? When was the last time you had a third-party person look over your portfolio and clearly point out to you where all the leaks are? You might be surprised how many there are. And no, I’m not talking about the obvious fees.

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