There's a guy named Nik Wallenda and he's a high-wire walker. He comes from a long line of high-wire walkers— seven generations to be exact. He's been walking on high wires since the age of two and makes his living walking on tightropes. He's one of the best. Nik walks between buildings, across canyons, even over Niagara Falls— with no harness and no safety net.
Nik's love for high-wire walking, and the skill it takes to master it, didn't just come to him overnight. Nik comes from a long line of daredevils, circus performers, and high-wire walkers. He is simply a bi-product of the environment he was raised in; destined to be a great performer and an even greater risk taker.
More than anyone, Nik understands the risks that he is taking with every performance. He trains hours upon hours each day on the wire, and he has a team of personal trainers that help him build his strength. His diet is regimented and carefully planned by his dietitian. His world-class training facility can replicate rumbling wind gusts of up to 80 miles per hour. Nik trains with a blindfold on, practices in the pouring rain, and employs the best engineers to rig up each of his wires to perfection. Nik has unwavering confidence, and a lot of that is due to surrounding himself with a solid team of trusted trainers who understand what he desires to accomplish.
Unfortunately, no matter how much preparation is done, Nik can't control sudden and ever-changing wind patterns or the rumbling of the ground below. Nik is aware of the risk he takes every time he steps on that wire.
It makes me pause and wonder—how many people are investing like this guy walks on a wire? How many people are putting their retirement, their savings, their children's college nest egg, even their legacy, at risk? Being invested in the market is like walking a high wire without a safety net.
Like Nik and his regimented training, we as investors can only control so much. We know the imminent risk we take with every dollar we invest in the market. We simply are hoping that the environment remains calm, perfect.
You have the confidence of Nik Wallenda when it comes to your investments. Or you may be scared, after having witnessed firsthand the unpredictable and devastating force the market can bring.
Who Needs Safety Nets?
David Hicks