Why I Don’t Invest In The Stock Market

What is investing?

At it’s root, the word invest literally means “to clothe my money”. I’m clothing my money in an asset and if done right, I should get interest, income, appreciation, or a combination of those.

  1. I only select clothing I understand
  2. I only select clothing that fits me
  3. I only select clothing that fits the occasion I’ll be using it for

Why should my investments be any different?

If I’m investing I’m going to follow the same parameters. So let’s look at a mutual fund.

Do I like stocks?

This is primary. I’m not going to invest in what I don’t like. For me, no I don’t like stocks.

Do I understand stocks?

I was a financial advisor for half a decade. I sold stocks and mutual funds. I passed federal and state licenses where I had to study what stocks, bonds, options, and other financial instruments and be able to understand what they were. I had to pass tests to ensure my understand. And I did very well on those tests too!

Do stocks fit me?

I’m a high control individual. I like to run things and have my hands on them and be in the driver’s seat. Stocks don’t give me that.

Do stocks fit the occasion I’d use them for?

I invest in 2 phases.

  1. Don’t invest in what I don’t understand
  2. Earn the highest growth rate possible while not violating #1 and #2
  1. Don’t invest in what I don’t understand
  2. Earn the highest monthly cash flow possible without touching my principal amount invested

In Summary?

The reason I don’t invest in stocks is that I don’t like them , I don’t understand them (and keep in mind that I know more than 99% of the population on this topic because of my back ground), they don’t fit me, and they don’t fit the occasion I would use them for.

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Jerry Fetta

Jerry Fetta

Jerry Fetta is the CEO and Founder of Wealth DynamX. Jerry’s mission in life is to help create millions of financially educated and wealthy families.