Keep on Eating?

Our youngest, Molly, has been on an eating binge unlike anything we have seen with our other two kids. We are all in amazement every time she sits down to eat a meal or even a snack. She is usually eating long after our other two are “too full” or “don’t want anymore!”

Our Saturday morning trip to IHOP (Molly calls it the Pancake House) was no exception. Since healthy eating is usually not the plan when going to the Pancake House, I let the kids order what they want. The two older kids ordered the disgustingly sweet cupcake pancakes, because why not combine cupcake icing, rainbow sprinkles, syrup, and pancakes??? Molly settled on the always popular combo of eggs, fruit (healthy!), and mac n’ cheese.

As you can see from the picture below, she was doing the kid version of double-fisting and alternated between eggs and mac n’ cheese with each bite. She eventually ate everything, including the fruit.

In today’s near record bull market, it is tempting to “keep on eating” the recent performance of US stocks. They are familiar names to us for the most part, and they have also been the best performing area of the market for the past few years. This is a bit of a dangerous combination, in my opinion, because it can make us all feel like temporary geniuses. By that I mean, some stock pickers have been rewarded in the short term for picking names that are familiar and local (US-based).

History tells us that will not continue to be the case. And, there has already been a shift in performance this year. Now, likely more than ever, is a time to make sure you aren’t overly invested in one area of the market. Resist the temptation to chase returns. And remember that a balanced portfolio will not only help to reduce risk, but also provide solid performance.

So, be like Molly and don’t just keep eating pancakes; throw in some fruit, eggs, and even some mac n’ cheese!