“Joey, Should I sell my equities? It’s getting expensive, and I’m nervous.” A six word response.

Real question, uttered by a frantic male voice through the phone 10 minutes ago. (He’s not my client, or he wouldn’t be panicking.)

My six word answer: You don’t want to do that.

Why do we invest? For income.

How do we invest? Based on your household goals and according to a rational plan. Here’s our trinity: goals —> plan —> portfolio. We design an investment strategy that transcends ephemera and fear and euphoria.

Paradoxically, this guy was responding in fear to euphoria (afraid of things going up and losing control?).

So, no, we don’t react to market prices (“too” high or “too” low) or political shenanigans or irrational human impulse. We look on these with the same stoic stare that a window sill cat gives to all the passing dogs.

Mr Euphoria Fear: “Wait, I shouldn’t sell? But I’m scared, and the market’s way high, and the politics are wacky, and, well, isn’t that ok? I’ll make money.”

Me: “I repeat: You don’t want to do that. Instead, do this: turn off the news, revisit your goals, go back to your plan, and call your financial advisor. If he says, “Sure, go ahead and sell. You seem upset,” fire him.”

Ephemera, fear, euphoria. Goals —> plan —> portfolio. Turn off the news. Work the plan.