Everything Is a “Pump and Dump”, Get Used to it.

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The ocean ebbs and flows. The tide comes in, the Tide goes out. A good sea captain understands this dynamic nature, and does not spend any effort on trying to change it. Instead, they read the charts and play close attention to current depths knowing full well they are constantly changing.

Sailors know this phenomenon very well. When the wind blows, it’s a great day. But if the wind is not blowing, there is not much you can do except get out the oars, or start up the engine. Every day is a new day. The weather is constantly changing, and a small boat on the water does not have control over this. They simply must adapt.

In the Northern Hemisphere, where I live, seasons come and go. Days are longer in the summer, and shorter in the winter. if you want to plant a garden, there are certain times of year that are more optimal than others for specific activities. For example, it is traditional to plant seeds in the spring, as the ground tends to warm up and the much-needed daylight is longer. And to harvest in the fall, as the days get shorter and the nights are cooler.

There is a very common term… “just go with the flow”. When you realize everything is cyclical, this means be open to change, nothing is static. “Ride the wave” when it comes, and take a break when you get the opportunity. Sometimes, it does make sense to “go against the grain”. But this does take more energy, so when one does take this approach, it is a good idea to assess what this will cost. Is it worth it? Sometimes it is.

There are many who have built greenhouses which grow produce all year round, regardless of the weather outside. Supplementing nature’s resources with artificial lighting and heat could very well pay off as the demand for fresh produce in the winter months more than pays for the added expense.

In investing, those who “go against the grain” are often called “value investors” (as opposed to growth investors). They see something undervalued and they purchase it with a longer time horizon in mind, and simply sit and wait for this value to be “discovered” by the greater market. This intuitively makes sense. To find things of great value that is not being focused on. The problem, of course, is how long do you have to wait until its proper value is discovered? How long do you have to sit on something before it is realized? And what are the risks in the meantime? Do you have the cash flow to survive while you are waiting for the value to be realized? This is an age-old question.

Real estate investing has similar concepts. Different governments have different focuses…for a variety or reasons, some good, some not so good, but as the “little guy” it is far easier to get to know what the priorities are and flow with them as opposed to investing in areas/neighborhoods being neglected or are even under attack. Unfortunately, sometimes increasing the crime rate is a certain city or region is quite purposeful. Ultimately this causes people to move out of that area and abandon their properties. When it all hits rock bottom a larger investor can then come in and scoop up all the land in a particular region and create whatever they want with no resistance. These cycles sometimes take 50 years to come about. Anyone who attempts to hold onto their property as the cycle is in decline faces an uphill battle which is very difficult to win without several seats in government. Often it is a better idea to figure out whish areas are being favoured and sponsored and flow your precious resources in that direction instead of fighting the battle.

Life is like that. If you want to be a professional athlete, you must invest a great deal of time and money in that pursuit. There are some great side benefits growing up playing sports….you body is fit and strong, you learn many socializing skills and generally hone your intuitive abilities and instincts. So even if you do not succeed in making the Olympic team or ending up being drafted for a professional league, the experience may be worth it. But the odds of reaching the ultimate goal are quite low, and many get quite discouraged along the way when they realize they will never make it to the top. Often, it is because of injuries the body doesn’t quite recover from. Other times it is simply that other opportunities present themselves that have a higher probability of success and fulfillment.