Waste of Focus

Per my usual format…my thoughts on a simple idea I’ve been chewing on lately.

First, from Wayne Himelsein, a mathematician and trader whose interviews I’ve been following lately.

“The WHY is a waste of focus".

That could really throw off a lot of investors! We are, after all, narrative-seeking primates.

Wayne was referring to the daily returns of the stock market. I’d agree that indeed, daily, weekly, monthly, and perhaps even a 3-year “why” for an asset’s return is a waste of focus. Unattributable in most cases (though financial media might insist otherwise.)

Interestingly, with so many competing variables it’s easy to speculate on the “why”, and perhaps even sound smart when we do it. But it’s a waste of focus.

Other wastes of focus:

  • Tr*mp’s tweets

  • CNBC dot com

  • Macroeconomics (sorry)

  • Commercials

  • These things from a weird Six Sigma website I just found:

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Some good uses of focus:

  • How much you’d like to own in risk assets

  • Personal fulfillment

  • Planning around your taxes, student loans, social security, pension, and real estate

  • Health

  • Reading excellent blog posts by your favorite CFP®

Robinson Crawford