Did you kept your cement premix dry?

Is liquidity a real thing?

When we have money, it’s hard to find anything to buy that has real value.When we don’t have money, enormous opportunities appears and we are unable to pursue them.
As an investor, all we want is to exploit the opportunity of buying low, and later selling it at higher price – and repeat that process as often as possible. That’s the way compounding returns are created that grows throughout the life.

A Local Bar

Ever went to a bar for ‘happy hour?’

The drinks are cheap, the bar is half full, and the bartender is ready to fill your glass in a flash.

Now, what is that same bar like at 9pm?


The bar is packed. There is nowhere to sit, people are stepping on your feet, the drinks are expensive, and you can’t get the attention of the bartender if your life depended on it.

It’s a stretch of a comparison, but I find it odd that people flock into crowded bars for poor service and expensive drinks. They could’ve showed up earlier for happy hour.

The reason for this is because of human nature. We all want to be in the herd with everyone else. It makes us feel comfortable and safe.

Unfortunately, this strategy does not work in the investing world. When we follow the crowd, we lose the ability to stay liquid for opportunities.

Stock Market

Today what we witness is that stocks and indexes are reaching historical highs almost every day – everything is expensive!

In addition, lots of people have money to spend. They have taken loans out from their highly valued homes; they’ve borrowed money from banks at extremely low rates, and investors are buying stocks on margin because brokerage houses are willing to lend.

This cheap and easy money is allowing everyone to buy stocks – which have made most markets very expensive.

What’s going to happen when the next market decline comes?

Who’s going to have money to buy stocks when they are cheap?

Maybe you will, if you have any dry cement premix.

So, I encourage you to look around and take an honest view of what is going on. Is there an opportunity? Should you be buying? Or should you just be sitting patiently and waiting for your opportunity?

Just like in the construction field… keep your cement dry and be prepared to add water and build when everyone else can’t.