Talk About Your GameStopper!!!
Updated: Mar 18, 2021
Catchy title, eh?? Almost as alluring as “$850 Million Powerball Lottery Tickets Available”.
Yesterday, some of my son’s friends asked me what I thought about the GameStop stock phenomena currently unfolding (amongst others).
My first response was similar to one of Yogi Berra most famous statements –It feels “like deja vous all over again”. While the headlines and the action are very reminiscent of the late 1990’s, that’s not what I’m talking about. In the third chapter of my book, “So Dad, How Can I Make Dollars & Sense?” , I spelled out how the Dot.Com Bubble and its subsequent bursting affected so many people. Yes, the actions of today’s markets have a very similar feel to them, and the stories can start to sound much alike. But what I’m talking about is how the headlines today are starting to grab our attention and tug at our emotions.
Since about this time last year, we’ve been in what I call The Period of Yuck! We were scrambled with the onset of the Corona virus – so much so that Corona beer sales were affected. We sheltered in place and scoured the grocery aisles for toilet paper and sanitizer. We’ve donned masks and separated ourselves to at least a six feet distance. We’ve closed down, hunkered down and have been ground down. There’s been both social and political unrest. And this Period of Yuck has left us physically, mentally and emotionally drained. And then winter set in. But out of the Yuck has emerged a couple of new emotions.
Like finding a shiny penny on the ground, the new headlines are starting to grab our attention. Super-sized lotteries and fast-moving stocks have us dreaming of better times and new wealth. Our imaginations start fantasizing about what we’ll buy, where we’ll go and what we’ll do and the celebrations we’ll have. Hope and fantasy start cutting the stench of stuck and alone. Yes, our emotions are getting re-charged and new energies are popping up. And in sneaks our little Buddy, Greed.
In the Dollars and Sense section of Chapter 3 (p.75) I talked about our Buddy. “Greed is a sneaky emotion. It cozies up next to you and coaxes you into other thoughts.” “I’m not greedy, I just want more!” And this sneaky little friend pops up in the middle of all the Yuck and says: “Let’s have some fun”, “Let’s make some money”, Let’s WIN!!”
Now, there’s absolutely nothing wrong with having some fun, making some money or winning. I love all three of those things, but they shouldn’t cause me to lose sight of what I’m really trying to do. And neither should The Period of Yuck! I shouldn’t let fear, boredom or negativity drive my investment building strategies either. If I have crafted a plan with a financial professional that suited my needs and preferences, I shouldn’t toss it out the door for any of those reasons. That’s not to say don’t have fun or dream, but to do so within reason and let your plan drive your actions more than your emotions. In my opinion, those are two of the most reliable Wealth-Building Insights for When Adulting Begins in EARNest.