Given that this month is the food edition of Lake Martin Living, I thought it would be fitting to weave together a comparison between what we put in our bodies and what we put in our portfolios. We all have our favorite comfort foods, just as many of us have our favorite “comfort” stocks. Typically, we crave foods with the most sugar and the highest calorie counts. In the short run, a cheat meal will not hurt us, but over the long term, a steady diet of junk food can cause serious health issues. Stocks operate under a similar psychology – the companies that are the most exciting and “delicious” right now might not be the healthiest choices for your long-term financial future.
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