Carpe Diem - “Seize the Day” and make a better tomorrow
The old Latin phrase Carpe Diem, translated as “Seize the Day,” sometimes gets loosely translated to the modern expression “you only live once” (YOLO). However, the modern term implies abandoning all cares for the future and living for today. In reality, Carpe Diem is more of an expression that tells us to take care of what we can today, for tomorrow is not guaranteed. In other words, whatever you can do to prepare for the future is what you should be doing now, in order to protect that future.
How does this relate to the Stock Market? I have posted eight prior blogs this year relating to the market, and what has been happening to stocks since the beginning of the year. In each of these posts, I have referenced current articles and provided rationale for why I believe it is a dangerous time to be in the stock market. As the market has reached ever increasing records for the S&P and the NASDAQ (the Dow peaked in January, and still hasn’t passed that level since), I have counseled that it represents higher and higher levels of risk, not an opportunity to make more money.
On my Twitter account (@MoneyWeatherMan), I have posted articles this week that reference warnings from Goldman Sacs and other money managers regarding the level of risk in the market and the probabilities for a bear market (indexes losing 20% or more) in the near future. Since nobody knows exactly when that will happen, doesn’t it make sense to protect your principal against future losses? Last month’s blog article advised to consider the risk/reward ratio against future profits, and decide what to do with your assets. This month I am attempting to be more explicit. Today is the day. Carpe Diem. Seize the day! Do what you can to prepare for the future and make a better tomorrow!
One final note: when bad things happen in the stock market, they usually happen in October.