Investing is like Fitness: What Gets Measured, Succeeds
I’m trying to get into shape.
I’m not out of shape by any stretch of the imagination. I can do 15 pulls ups, 50 pushups, and run two miles in under 17 minutes, in that order.
However, I’ve decided I want to hit age 40 in the best shape of my life. I’m talking about having six-pack abs and lifting the heaviest weights of my life (I want to bench press 225lbs and dead lift over 300lbs).
I just turned 39 a few weeks ago, so I’ve got 12 months to do this. And I’m telling all of you these above because I want to be held accountable to these goals.
The only way to be held truly accountable is to tell others about your goals. By making your goals known to others, you increase the pressure on yourself to deliver results. Humans are social creatures, and social pressure — particularly the fear of embarrassing one’s self — is an incredible motivator.
The other rule I use for accomplishing goals is to keep track of my progress with a personal journal. Doing this provides a personal record that allows you to accurately measure your progress. And in fitness, business, or trading, one of the truest adages I’ve ever heard is “what gets measured, succeeds.”
If you want to get six-pack abs, hit $10 million in revenues with a business venture, or trade your way to a seven-figure net worth, YOU HAVE TO MEASURE YOUR RESULTS.
This is why I ALWAYS tell others about my goals… and perform regular reviews of my progress.
So, with that in mind, today I’d like to review how my three-month stock market forecast has fared.
Success in the Form of Failure
On November 20th 2019, I published an article titled Money & Crisis Stock Market Forecast into Early 2020.
At that time, I forecasted that stocks would stage a minor correction before running to new all-time highs. My specific forecast was that the correction would likely prove less shallow than a drop to 3,020 on the S&P 500.
The S&P 500 did indeed correct within two weeks of my forecast, falling to 3,100 (well above 3,020). And it has since rallied to new all-time highs, peaking at 3,350 earlier this week. You can see this in the chart below.
To review, I’d give my forecast an A+.
Now, it’s easy to review your work when you’re correct. But it’s equally — if not even MORE important — to review your work when you’re wrong. In fact, I’ve found that I learn a lot more from my failures as a strategist than my success.
This is why I ALWAYS review my forecasts with you, regardless of whether I’ve been right or wrong. I want to hold myself accountable to you as a reader. And what gets measured, succeeds.
Here at Money & Crisis, we’re not interested in puffing our egos by touting our successes and ignoring our failures. Rather, we’re interested in delivering actual real results — and that means holding ourselves accountable and reviewing our progress.
What goals do you have for yourself for 2019? Have your told others about them yet? And are your keeping records of your progress?
Editor, Money & Crisis