It’s time to face a painful truth.  We’re human and we’re flawed.  We like to think we can do no wrong but it simply isn’t true.  Even if we’re “smart” we often do dumb things.  How else to explain boy bands and “reality” TV?!  If we didn’t listen or watch it would go away.

When it comes to investing we’re perpetually stupid.  Adages about retail investors loving to buy high and sell low stick around for a reason.  Why?  Wait for it…wait for it…because it’s true.

We panicked in ’08 and rushed to lock in our losses.  Then we sat out while the S&P 500 gained 149%.  Now investors are rushing to buy in, waiting for the next “hot stock,” desperate to find that winning lottery ticket that will make up for years of ignorant bliss.

Where to turn?  The talking heads.  Of course!  Get two dopes with an agenda (you don’t really think they have your best interest in mind, do you?), put ‘em on CNBC (or Fox Business or Bloomberg if you prefer) and have them argue two sides of the same coin.  “Stocks are going up.  You’re crazy, stocks are going down.”  Ignore the person who isn’t saying what you want to hear, isn’t handsome or pretty, doesn’t have a trusting voice, etc and embrace everything the other person says.  Then buy a bunch of stuff, sell a bunch of other stuff and pray.  Pray that their crystal ball isn’t cloudy.  Pray that the Hail Mary will be caught.  We need a touchdown damn it!

But wait.  There must be a better way.  Maybe acting on emotion isn’t the answer.  Maybe listening to a bunch of empty suits won’t help after all.  Maybe focusing on anyone using buzzwords like “taper” won’t provide any value.

Best of all maybe acting based on prediction or premonition (or coin toss to be most accurate) isn’t the way to go.  What’s our obsession with it anyway?  How right are we?  Economists have correctly predicted ten of the last five recessions!

Somehow short-term thinking doesn’t seem the way to go.  Somehow emotionally-based decisions and acting for the sake of appearing to be doing something don’t seem like prudent strategies.

Sometimes the best strategy is doing nothing.  That’s right. Nothing.  That won’t grab headlines, that won’t sell newspapers, that won’t increase ratings and it won’t attract eyeballs.

Why the rant?  Because we’re human and we’re flawed.  We tell ourselves we believe in smart, risk-adjusted strategies.  We tell ourselves we aren’t market timers.  We fool ourselves into believing we buy into investing being one piece of a larger financial security puzzle along with cash flow, debt management, insurance, estate planning, taxation, etc.  Then some dope on TV says something or some desperate for attention website posts an article and we panic.  “I heard the market is headed for a correction.  Let’s sell everything.  No, wait, I heard we should buy on a dip.  Let’s pile into the market.”

Folks, leave the gambling to the gamblers.  Leave the herd following to the sheep (who end up in slaughter by the way).  Turn off the TV, put down your iPad and stop flipping coins.  Stop worrying about how “obvious” it is that The Fed will taper and action is needed.  Why?  Because it was “obvious” The Euro was going to break up, planes would fall out of the sky because of Y2K and so on.  Just how obvious is obvious?  More so just how actionable are these “obvious” events?

Predictions are pointless.  Guessing serves no purpose.  Acting for the sake of acting is a waste of time.  Prudent, long-term strategies survive every hiccup and bump in the road.  There will always be turbulence.  Sure the smooth flight from NY to LA is more enjoyable than the bumpy one but both arrive on time, don’t they?

It’s the end of August.  Kids are soon going back to school, families are squeezing in those last few days together and vacation season is almost over.  Go enjoy yourselves.  Go relax.  Have a drink.  Have two.  Go for a walk with the ones you love.  Remember that money is a means to an end.  Focus on what matters and ignore the noise.  You’ll be happier.  So will your loved ones who have to live with you.

It’s time to climb down from the soapbox.  I have to go update my Facebook status to “I don’t give a ____.”