“If everyone is thinking the same thing, then nobody’s thinking”

-General George Patton

 

Three Reasons to Stop Following the Crowd

Sometimes following the crowd makes sense. All drivers agree to stop at a red light, or a fire inside a building, people make their way toward the exits.  Other times it makes no sense at all – especially when it comes to investing your hard-earned money.

 

1. Crowds Can Be Dangerous

Case in point:  In 2008 the Great Recession, 2nd worse bear market in history turned 401(k)s into “201(k)s.” Many American’s retirement plans were crushed after markets corrected over 50%.

2. Crowds Get Excited About… Sometimes Nothing.

Think about Dotcom & Crypto Bubbles.  During the technology bubble of 2000 many popular companies went bust taking hard earned money from investors.  (Remember Pets.com?)  Many fortunes were made, but also lost during the technology bubble. 

The Crypto story is not finished, but history suggests the crowd today is no different from the past when it comes to hype and excitement.

3. Crowds Like Sheep Follow Each Other Off the Cliff

  • Is it a blip or a trend?
  • Will the decisions made by a Government 12,000 miles away lead to a stock market crash? 
  • What if inflation continues to increase and energy prices move higher? 

Uncertainty is why the crowd often makes irrational investment decisions, or like sheep follow the leader off the cliff.

Three Peaks Wealth Management Tactical Investing

Most of the time common investment strategies keep investors 100% invested regardless of changing market trends, and these investing crowds are seldom prepared to make real changes before, or during market declines.  These crowds often suffer without using an exit plan.

In contrast, our tactical investment strategies frequently identify positive and negative changes in market trends thus allowing us to quickly raise or reduce equity exposure.  These changes can increase cash holdings during difficult market cycles producing a positive impact on returns while also minimize risk.

Remember, Time is Money – Connect with Us Today

Three Peaks Wealth Management can provide you the following professional services when we manage your most important assets.

  1. Tactical Investment Management
  2. Continuous Financial & Retirement Planning
  3. Personal Advice which is an email, text, or phone call away - anytime.
  4. Resources for Tax Strategies, Real Estate Investment, and Insurance.

 

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