Jim Cramer, CNBC’s highly public “market guru” is wrong more frequently than the probability of flipping a coin in your favour. His stock tips as of May 2014 were right 47.6% of the time. Jim Cramer is an entertainer and he’s very good at that. But gurus are accurate until they are not. This isn’t an attack on Cramer. He’s just an easy target.
How would you feel if your position in an investment just dropped 20%? Would you like to switch topics? I’ll kind of switch topics. Boating through the Gulf Islands with a well-appointed boat and good weather makes a lifeboat drill so much easier.
I’m sure you’ve heard this term before: “The Smart Money”. Smart Money knows when to buy and sell and what to buy and sell. Everyone else sells low and then turns around and buys high. (Most investors fall into the latter camp.)
In a recent meeting, a wealthy client told me a story about his daughter, who will be off to university in a few years. Our client said that he and his daughter were having a very nice discussion about where she plans to attend. She became very passionate about a small arts and sciences university here on the west coast.
When meeting with couples, it is unusual to learn that they share the same relationship with money. I’m not saying that it’s a gender issue. Maybe sometimes it is. But it often goes far deeper than that. Money conversations are complicated because we’re dealing with both a lifetime money experience and a family financial history. Times two.