Market Apathy

I have a confession to make.  I suffer from market apathy.    My days of checking the stock ticker  have slipped to the wayside.  I used to care.  I used to wait expectantly at the end of the day to see the new heights to which the Dow had soared.  And I used to feel crushed on the days when my net worth circled down the drain into the toilet.

I don’t anymore.

It’s not that I am frivolous about wealth or even disconnected from financial independence.  In fact, I would say that I am more engaged than ever.

Over time, I have learned to see the stock market as a tool.  It is a part of my four-legged financial plan, but only holds as much importance as the three other legs.

Market gains or market losses, I am covered.

Here’s how.

Market Fidelity

What comes up must go down?  While we like to apply Newton’s principles to just about everything, they might not hold for the American stock market.  In fact, my only gamble with the market is a basic one.  I believe that the economy is in good enough shape to sustain gains over the long-term.  With that belief in hand, the day-to-day or even year to year gyrations rarely interest me.

I have learned a good dose of market apathy after panicking through the downs and celebrating through the ups.

I don’t plan on touching these broadly based indexed investments for years.  As long as the market moves in the right direction over the long-term, so do I.

So if I know I am not going to touch my investments for years, how do I support my daily spending needs?

Simple, it’s the magic of uncorrelated returns.

Uncorrelated Returns

A good third of my wealth is currently deployed in real estate holdings.  These holdings, in the form of rental condos, pay their own dividends by  cash flow.  I collect rents, pay bills, and the money left over is free to be spent however I please.

The stock market generally doesn’t affect my real estate prowess.

Barring major calamity,  my condos rent whether my index funds are up or down.  The cash comes in.  In fact, my market apathy turns to excitement when I realize I can use all the leftovers to keep buying stock during the lows.

Human Capital

There is no greater cause of market apathy than human capital.  No matter what happens on Wall Street, my paycheck keeps coming in.  Given that I have downsized to a very comfortable work environment, I don’t feel the fatigue and burn out of the regular 9 to 5 workday.   I could continue being a physician forever, and cover most of my monthly expenses.

And if I get tired of being a physician, there is a bevy of side hustles that can keep me busy and support my current spending needs.  Whether blogging, real estate, or a bunch of lazy side hustles, there is no lack of opportunity for money-making ventures.

Most importantly, my doctoring job, as well as my side hustles, are generally not dependent on a good economy.  The market can spin out of control and yet my skills will still be needed.

Final Thoughts

I can’t help but have a good dose of market apathy.  My financial plan has been set in motion such that I will succeed in both good and bad market conditions.

I have done this by uncorrelating risk with real estate investments, and by utilizing human capital which I can deploy at will.

At some point, I will get tired of working and landlording, and then my apathy may disappear.

Or maybe I’ll annuitize.