I had a great conversation with my Investment Advisor today about stocks. We were talking about the follies of moving around your money between blue-chip companies too much just because the stock dips slightly. When the market isn’t in crisis and the economy is moving forward, in most cases, it will always work in your favour to leave your money in place especially if the company has a history of performing at a steady rate over time.
My advisor was telling me how often it is a client moves money out of ‘Company A’ and into ‘Company B’ because the stock hasn’t moved in 15 to 30 days only to see the price increase after they have made the switch. The morale of the story is let the blue chip company perform and invest for the long term.
When it all registered to me, I immediately thought of dieting and plan adjustments. “When am I getting my next plan?” is the question that is echoed to me on a regular basis. A great plan is one that doesn’t need to be changed regularly. Just like a great stock for investment purposes (not gambling), the investment grows when you stick with it.
The human body needs to adapt to a program before eliciting a response and that timeframe can be anywhere from 4 to 6 to even 8 weeks. Changing the programming too often and too soon doesn’t allow the body to “master” the phase and eliciting a physiological change such as fat loss comes from consistent diet and training working synergistically, over time. It doesn’t happen because of variety.
If the specific business sector (or the economy) of your investment is about to go in a recession, then that is probably the best time to move around your money.
If there is something that is preventing you from executing all of the goals on your plan that is beyond your control, then that is the time to change your programming.
In both cases, the payoff and the reward happens over time and with patience.