The classic REM tune has been resonating in my head over the last month. I do feel fine. Well, fairly fine, and this is why:
As I have been discussing the recent market volatility, I have stated the idea that if the stock market crashes and never returns above current levels, or goes to zero, then that would mean our capitalist economy has collapsed and therefore our dollars and "safe" US Treasury securities would likely be worth nothing. It would be the end of the world as we know it.
So, like the French philosopher, Pascal, who wagered that one should believe in God, because to believe means eternal paradise and if God doesn't exist then nothing is lost, I am wagering on capital (stock) markets to continue to provide good risk adjusted returns. If they don't, it wont matter where I had my money stashed. I am wagering on the stock market over the long term and I know that if I get out of stocks now I will lock in my losses and likely miss the increase in prices that has always occurred with stocks after a correction. And, if it is the end of the world as we know it, then nothing is gained and all I will have is meaningless losses.
Therefore, I feel fine. Either I will be ok or it wont really matter. I dont worry about the day to day stock market craziness. I know that will happen. I don't invest in stocks to make short term gains. I hold a well diversified portfolio, that as long as capitalism survives, should provide me with a nice risk adjusted return - I hope somewhere between 6% and 10% over the next 30 years. I have 60% of my retirement in the stock market. I am 45 years old, I wont need that portion of my portfolio for 30 years and the stock market has always been the best investment over that length time.
If you continue to read through the lyrics below, you will read the last line: "its time I had some time alone" By taking the leap of faith and developing a well diversified portfolio, rebalancing it and letting it ride you will capture a the long term returns of the global capital markets and you will have your time to be alone and not worry about the markets and whether to buy and sell or shift to a new sector.
As for me, I am going to hit send, turn off CNBC and go for a run and have time to myself.
"That's great, it starts with an earthquake, birds and snakes, an aeroplane -
Lenny Bruce is not afraid. Eye of a hurricane, listen to yourself churn -
world serves its own needs, regardless of your own needs. Feed it up a knock,
speed, grunt no, strength no. Ladder structure clatter with fear of height,
down height. Wire in a fire, represent the seven games in a government for
hire and a combat site. Left her, wasn't coming in a hurry with the furies
breathing down your neck. Team by team reporters baffled, trump, tethered
crop. Look at that low plane! Fine then. Uh oh, overflow, population,
common group, but it'll do. Save yourself, serve yourself. World serves its
own needs, listen to your heart bleed. Tell me with the rapture and the
reverent in the right - right. You vitriolic, patriotic, slam, fight, bright
light, feeling pretty psyched.
It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.
Six o'clock - TV hour. Don't get caught in foreign tower. Slash and burn,
return, listen to yourself churn. Lock him in uniform and book burning,
blood letting. Every motive escalate. Automotive incinerate. Light a candle,
light a motive. Step down, step down. Watch a heel crush, crush. Uh oh,
this means no fear - cavalier. Renegade and steer clear! A tournament,
a tournament, a tournament of lies. Offer me solutions, offer me alternatives
and I decline.
It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.
The other night I tripped a nice continental drift divide. Mount St. Edelite.
Leonard Bernstein. Leonid Breshnev, Lenny Bruce and Lester Bangs.
Birthday party, cheesecake, jelly bean, boom! You symbiotic, patriotic,
slam, but neck, right? Right.
It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine...fine...
(It's time I had some time alone)"
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