Manarin Investment Counsel, Ltd.

Do you think of yourself as a rational investor? 

Before you place your next trade be sure to answer that question.  No investor is rational all the time.  Inevitably, some decisions are made on emotion and gut instinct - but for your sake, and your bottom line, I hope it's not too many.

So here we are today with the stock market humming along nicely over the last few weeks.  Most stock market indexes are up over 70% for the past year and we see more positive economic data each day.  But it's the rational investor in us that tempers too much excitement because the economic and geopolitical storms will someday return. 

This steady incline can't go on forever without a blip.  An event within our borders or in some remote corner of the world could set off  another downturn so we must remain prepared. 

Here's the lesson:  Keep your emotional seatbelt tightly fastened and don't be surprised when something happens.  Consider it a buying opportunity.  Maintain a rational investment strategy aligned with the lessons of monetary history, namely that the government and the Fed will continue creating money from thin air resulting in loss of purchasing power of investments tied to the value of the US dollar. 

My best guess is that the population will soon discover the difficult truths about the corrupting effects brought on by the federal deficit, unfunded liabilities, federal debt and growing political power.  This all has an impact on investments, jobs, careers and retirements and eventually a tipping point will be reached.

Remain psychologically and financially ready.

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