Inflation Doesnât Care About Your Yield
A big dividend looks comforting. It feels like progress.
But inflation doesnât care what your stock or ETF or CC pays.
It cares what your money can buy.
Over the last 25 years, our purchasing power has dropped by almost half.
Over the next 25 years, it will fall likely more than half.
Iâm a dividend investor, but I have to have extreme discipline not to get sucked into the mental trap that my dividends and yields are security. They are not.
Investing complacency is a killer.
Growth is what ultimately matters.
Long term financial survival requires growth.
The â$1M is enoughâ illusion.
The Covered Call high yield illusion.
The XEQT illusion.
The dividend illusion.
I see illusions all the time on Blossom masquerading as âconvictionâ.
When you start to believe in ONE Kool-Aide, you must wake up. You have fallen for your own illusion. And your conviction is telling.
When you start arguing righteously in the superiority of your investing âstyleâ, you are hypnotized by your own hubris.
Illusions are like that. You donât know you are in it.
I donât believe in the superiority or security of any investing âstyleâ.
I have seen too much. I have experienced first hand too many companies fail, and enough market crashes, and regulatory dysfunction and incompetence to know:
There is no security when it comes to investing.
Ego, hubris, conviction is the kiss of death, and always leads to getting wiped out. Itâs just a matter of time.
I donât believe my own bull anymore. I challenge my own thinking everyday, with the thought:
What if Iâm wrong?â
Whatâs the back up plan?
Whatâs the worst case scenario?
How do I hedge my risk?
This is how I have made it through managing billion dollar projects, billion dollar companies and thousands and thousands of moments of potential failure.
Ignorance is bliss is a saying for a reason.
But Iâm not sheep, because I have seen too much.
I hope for those who âgetâ what I am saying, donât fear. No, itâs about the cold realization that there is nothing that is fool proof, so you have to keep learning.
Stay open, be receptive.
You canât learn from the universe, if you are a closed book of ideological conviction.
I donât care about âbeingâ right. âIâ donât matter. Not on Blossom or in life.
I care about providing for my family, day in, and day out. Today and tomorrow.
Blossom is a great place to cherry pick the good stuff. Figure out a strategy. Figure out a plan. Figure out a system.
But be wary of illusion. It will suck you into the trap of a raging bull market thinking youâre a genius. Until youâre not.
