Today, I woke up later than usual and was running a little late to work. Okay, maybe more than just a little. I was running very late for work. So I did my morning ritual except for eating breakfast and jumped into the car. I knew when I started the engine that I had at least another forty to forty five minutes to drive before punching in. The car lurched forward and I was on my way building velocity and momentum for the day ahead.
Traffic Jam
But a few blocks later I had to slow down. Almost to a stop actually. My lane apparently was closed up ahead because of some maintenance up in the power lines. I waited as patiently as someone running very late could and switched lanes. Then that lane slowed down and I noticed that the original lane I had left a few blocks ago was now running faster and smoother than when I left it. I glanced at the time on the radio dial and revved my sports car and quickly changed lanes (I signaled first, don’t worry) to get on the “fast lane” again.
Is this a joke?
Of course, like a wicked prank, my new lane slowed down and the one I had left not more than a couple of minutes ago started going faster. Now I was faced with a choice – to switch or not to switch, that is the question. It was not as weighty as the decision Hamlet
Chasing Performance
Then it occurred to me that this exact same behavior is what got me in trouble with some ETF’s over the summer. After the March lows, the sector of the market that rebounded (like a dead cat some said) the most was the financial sector. I was holding treasury inflation protected securities (TIPS) and was not seeing the kind of rally the financial sector was having. That sector was moving fast. So I sold all of my safe stuff and decided to get on the FASt lane. Clever, I know. Anyway, as you might have guessed, everyone already had been on that ETF and the overbought conditions did not make for much upward movement. Then I saw DRE going up like crazy after a string of good real estate numbers. I did not learn my lesson the first time.
Master the Ride
Looking back I realized that the main reason I was acting so irrationally in both my drive to work and trading with ETF’s is because I was late. I was late. If it wasn’t for that fact, I would most likely have been more calm and collected. If I had woken up earlier, it really would not have mattered which lane I got stuck with because I still would have gotten to work on time. If I had invested in equities sooner, it would not have mattered if I had wagered on financials or real estate or even the energy sector because all these sectors still would have returned awesome profits. By planning ahead and getting in early you can create your own fast lane because by the time people start switching onto your lane, then you will already have gotten to your destination.
(photo: haukur8)
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I need to shape up...
eemusings on November 16, 2009
Planning is KEY. In everything, from your career to grocery shopping! Fantastic post.
karl on November 17, 2009
thanks for the kind words. as a poet and essayist, i know why planning is so important to you. it really helps me with these posts to have, at the very least, an outline when i get started. but i also find that sometimes i work on my outline way too much when i really should just get to writing the post. yeah, i like to procrastinate but not because i’m a perfectionist like mike though. eh, sometimes i just like to drag my feet.
mike on November 17, 2009
@eemusings – while I agree that for a majority of the time having a good plan will be very beneficial, I think for certain occasion or certain personality types (aka, perfectionists like myself) taking ACTION immediately and planning along the way is also something worth considering. If you feel strongly enough about an idea, like a business venture for example, and you have a compelling reason to do it, then I would suggest just jumping in and just DO IT.
I think that sometimes, people like me can take planing way too seriously when all we are really just doing is just procrastinating – because we are afraid of something. So we just keep planning and planning, and planning…
mike´s last blog ..Living in the Fast Lane
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eemusings on November 17, 2009
Oh, I’m definitely a procrastinator! People find it extremely frustrating being around me when I’m trying to make decisions (even mundane ones like what to order at a restaurant. But seriously, I’d like to think I act when I need to: when it’s important. I can’t think of any occasions where overplanning has led me to regret.
eemusings´s last blog ..What my degree cost me