Mailbag: Don’t Put the Wind Vane on the Barn Yet

Andy Snyder|March 26, 2020

The news keeps getting weirder… and worse.

We’ll start with the weird.

The folks who have deemed themselves in charge of the Appalachian Trail have made an odd request.

Stay away, they beg.

With shops closed, schools out and springtime weather drawing folks outside where they belong, they’re flooding one of the nation’s most iconic hiking trails.

What’s happening on the trail is counter to social distancing efforts, the experts claim. Folks are sharing picnic tables, using outhouses and filling up parking lots.

Oh my.

The answer?

Go home and watch Netflix, we suppose.

What a world.

Idiots Abound

In Los Angeles, the news is even worse. It ties directly to what we scratched our head about yesterday – our loss of Liberty.

The sheriff closed the gun stores.

Folks must be getting sick while waiting in line to buy guns, right?

Nope.

Here it is straight from the sheriff’s mouth…

“We will be closing them. They are not an essential function,” said L.A. County Sherriff Alex Villanueva. “I’m a supporter of the Second Amendment. I’m a gun owner myself, but now you have the mixture of people who are not formerly gun owners, and you have a lot more people at home, and anytime you introduce a firearm in a home, from what I understand from CDC studies, it increases fourfold the chance that someone is going to get shot.”

Insane.

The sheriff thinks that, maybe, new gunowners are untrained and that, if he read it right, a CDC report says more folks could, perhaps, accidentally get shot when you bring a new gun into a home.

Meanwhile… liquor stores across the nation remain open.

We figure the CDC must still be researching whether more liquor sales leads to more drinking.

We’ll let you know as soon as we hear from the experts in D.C.

Is Money Bad Too?

But guns and liquor… they’re not our full-time beat (more like a weekend hobby).

Nope.

Money is our game.

And, let’s be clear, there are lots of threats to your financial Liberty these days.

Despite the fear that you’ll load up our mailbag, we’ve sworn to tell the truth, the whole truth and nothing but the truth. And the truth is the biggest threat to your money right now… may be you.

Sorry.

We opened our inbox to some scary notes this week. And if one person is asking… we know thousands more are afraid to raise their hands.

Is this you?

Hi Andy, for now I can only invest in very small caps, as I live paycheck to paycheck. So is there any chance for people like us in the market? Trying to do the best I can with the money I have (credit cards).

That sounds pathetic, but this is what it is for me right now and I hate to feel that way – like with almost no hope. Sorry about that, but it is how I am feeling while writing this.

I love reading your e-letters. They are very informative and interesting. I really appreciate your work and what you do for all of us. – Reader A.R.

This one hurts… a lot.

Let me be 100% clear… Our heart aches when we hear anybody say their thoughts or ideas “sound pathetic.” We won’t stand for it.

You’re in the situation you’re in. It may be your fault. It may not be. Doesn’t matter. All that matters is your next step.

And with the right information and the right Know-How… there is hope. Immense hope.

But know this… “Very small caps” are not your answer. Not at all.

Sure, you may have $500. But gambling on 500 shares – or worse, a thousand shares – of a single stock is a recipe for having no money.

We love small caps. We love smart speculation. But you put the fancy wind vane on the barn… only once you’re sure the foundation can withstand the storm.

Our suggestion to anybody with a few bucks looking to start out: Buy the market. Grab a few shares of the Vanguard S&P 500 ETF (VOO). It’s trading at a huge discount to where it started the year… and likely won’t stay that way for long.

We’ll also sign you up for a free subscription to Manward Letter, A.R.

It will get your mind and your wallet in the right place.

It’s notes like this one that have me so excited that we’ve recently brought Mark Ford to Manward. His advice on building wealth and creating a wealth-focused mindset is some of the best on the planet.

More Debt? More Gains?

Here’s another note from the mailbag that may sound familiar…

There are some good bargains in the stock market now. Would a guy recommend borrowing to buy these bargains rather than selling part of your portfolio and taking a huge loss? Thanks. – Reader T.D.

T.D. is right… There are some incredible bargains in the stock market these days. Just yesterday, we compiled a list of stocks that haven’t been this cheap in a decade.

We’re excited.

But the question above is a bit odd.

If stocks are indeed great bargains, should you be selling them and locking in a loss… just to turn around and buy another great bargain?

Unless you’re very confident your loser is fairly valued and will remain a loser, the move wouldn’t do you much good. You’d be using a $10 bill to buy a $5 bill.

Stick with what you have. If you liked it at $10… you should love it at $5.

As for borrowing, whew, our brow is sweating.

It’s the territory of the big boys. If you’ve got the foundation… there are some opportunities for sure.

If not, debt can get you in some serious trouble.

Talk to a pro who knows your unique situation. (But be aware… The government may have closed his office this week. You may have to meet with him at a liquor store.)

Last one so we can start the day feeling good…

Just a real brief note to say thank you for the sometimes scary but usually uplifting message that you share with me each day. I look forward to reading your email to get me started every morning. – Reader R.D.

You sound like Mrs. Manward, R.D.

She often compliments our “tolerable” looks and “usually” good temperament.

We’re glad you enjoy.

We enjoy writing to you.