The Club Mastermind, LLC

On October 22nd, in the midst of a lot of uncertainty in the financial markets and pre-election, a Member of The Club had an epiphany.

Over this past summer, Alicia* was a bit confused and overwhelmed by the negative media coverage. So much bad news had surfaced...it was unnerving.

Maybe you can relate - when all you have to listen to is the media and friends and family crying 'woe' - an uneasy feeling starts to build in your stomach.

But in the fall, despite the news, Alicia felt calm, collected, relaxed. At our bi-monthly mastermind on October 21st, Alicia had said, "I feel relaxed, but I just don't know why."

And then, the next day, she had a breakthrough. And she shared it in an e-mail to me. I share it today with you, in the hopes that you apply it in your investing:

"Hi, Pete: I've been thinking about my comment yesterday about my confidence (or lack thereof) in the market...and why I feel that way.

This morning, I was watching the news and hearing about foreign markets dropping overnight, futures dropping, earnings reports coming in below estimates (I missed Libor rates this morning) and still felt confident! 

Why? I think the reason is that the reality finally matches the perception.

For the past 18 months or so we've heard nothing but bad news about our economy, yet much of the real data refuted that news.  I've really struggled with "which way am I supposed to go" in that kind of an environment. 

Now, the data supports that indeed we have entered a recession.  Again, the reality matches the perception.  I think we're back in a factual world, and I know how to act in this kind of world. 

Certainly I'd prefer to be in a bull market, but I can live with a bear market if I know it really exits.  I don't know how to act in a world of (negative) perceptions only, which is where we've been for a while. 

Now, the economy is really slowing down, the bottom has fallen out of the financial markets, the government is taking some ridiculous steps to save the weak and perpetuate our welfare economy. 

These are facts, and I can react to facts, I can't react to perception."

Alicia goes on to explain what this means for her (and your) real estate investing plan:

"I believe we have entered into an era of incredible opportunity for many people, I'm out pounding the pavement looking for the next deal that's right for me and I'm excited to find it. 

Real estate prices continue to drop, sellers are ready to negotiate.  I don't see this turning around quickly and that is reflected in the prices I'm offering for properties, but sellers are no longer shocked at my offers.  I still haven't found the right one, but I will and I'm looking forward to rehabbing another property and creating a nice home for someone and selling it to them at a "value" price. 

As this economic situation worsens, the only people left doing business are serious business people, and I'm looking forward to doing business with them.

That's why I have confidence in the market right now.

Thanks, Alicia"

Thank YOU, Alicia. Because you have identified a big lesson - about how you can continue to take action in the midst of "bad" news.

Feel free to comment below - and let me know what you are going to do with this insight.

To your success,

Peter Giardini, The Club Mastermind, LLC

* In accordance with our Code Of Honor, all Club Meetings and Coach correspondence are confidential. Her e-mail message, as with any Club Member story, is shared with Alicia's permission.