Shutterstock photo
Markets

Weekend Edition – It’s a Numbers Game

As we come off a few days of sitting around with family, the takeaways usually include life updates, good stories, tough stories, and more.

The topics of conversation at annual gatherings are usually the same. This year, the presidential election was certainly one that was a main theme, along with many other topics like:

  • What's going on at work?
  • How are the kids doing in school?
  • Doing any shopping over the Thanksgiving weekend?
  • How did you survive the storm?
  • Aren't the New York Jets awful (my favorite of course as the suffering continues)?
  • What's the market going to do?
  • …and so on.

Regardless of the answers to these questions, sooner or later most of us realize one thing: eventually success and failure are defined by numbers.

We may think retail sales will be slow this season, but then we'll hear some data about how great sales were, and presto, our mindset quickly changes. We may think the earnings reports in the first quarter will show a rebound and then presto, we get a slew of warnings and optimism quickly diminishes. We may think our job is important to our company's existence and then you hear rumblings about missed projections or management deciding to change direction as things may not be as strong as you think they are, and now your financial foundation is in jeopardy. What's it all tied to? Numbers! That's all it is. In sports, it's about winning and that's it. As Vince Lombardi once said about winning, if winning was not important then why do they keep score?

Some people take unfavorable results in life too personally. In reality, it's just a numbers game. Knowing this fact is the key to understanding what ultimately defines how smooth our financial and professional course will be. Companies don't shut down to teach workers lessons, they shut down because the numbers just don't work anymore. Teams fire coaches, not because players don't like them, but simply because the team isn't winning. There are plenty of examples where teams love playing for certain coaches, but the end result doesn't add up to a trip to the playoffs or a shot at the championship.

Investing is no different. There will be a time when stocks that have made great runs will no longer matter for our portfolio because they simply aren't performing for whatever reason. It's on us to decide when to pull the plug. The same applies to our professional and personal lives. Realize this fact and you will be smarter and more prepared for eventual pivots we all need to make at times.

Go Beyond This Newsletter

We know many of you enjoy reading the daily newsletter, but remember that with our Dividend.com Premium service, the newsletter is just one small component of what we offer. Here are the "Big Three" benefits of our Premium service:

- The Best Dividend Stocks List is used by tens of thousands of investors to help build their own portfolios.

- Creating your own Watchlist allows you to track the performance, news, and upcoming dividend payouts of the particular stocks you care about.

- Finally, we offer the most complete and easy-to-use dividend data on the web. Many subscribers use this data as part of a "Dividend Capture" trading strategy, but long-term investors can use it to keep track of impending payouts. Just visit our Ex-Dividend Calendar for a complete outlook on which companies will be paying out soon.

We don't ask for a credit card to use our free trial, and we don't bill you when your trial ends. No obligation whatsoever! So keep enjoying the newsletter, but please give Dividend.com Premium a shot if you haven't already subscribed!

An Important Note Regarding the Best Dividend Stocks List

We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one's account until we see a better entry point or catalyst.

And here's one last thing to remember about what we do here at Dividend.com. It's not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!

Thank you for sharing part of your weekend with me, and please be sure to pass this post on to anyone you think we can get inspired and educated about money, building wealth, and using common sense to do so.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks