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Higgins Capital Management, Inc.

Invest First, Then Do the Other Stuff

In today’s turbulent macro environment, priorities need to be ruthlessly clear. Inflationary pressures, geopolitical tensions, and fluctuating interest rates make decision-making more complex. However, for seasoned stock market investors, one thing remains indisputable: investing should come first, before any distractions, tangents, or secondary pursuits. Whether you're managing substantial portfolios or personal wealth, the art of strategic capital deployment has never been more critical.

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Investing is not merely an action but a philosophy—one that thrives on opportunity and decisiveness. When markets are volatile, they also tend to be the most opportunistic. Every period of instability creates under valuations, mis-pricings, and unique entry points that sophisticated investors can capitalize on if they are alert and agile. When you “invest first,” you make decisions driven by economic reality rather than reactionary impulses.

At this moment, sidestepping or postponing investment decisions means letting market forces decide your fate. Passive decision-making is inherently riskier than calculated investment, especially when inflation quietly erodes cash savings. Parking capital on the sidelines, waiting for "certainty" in the economy, exposes you to missed opportunities and hidden losses. Even in volatile conditions, there are often sectors or asset classes that offer significant risk-adjusted returns.

Understanding market cycles is a hallmark of seasoned investors. The same dynamics that make some shy away from the markets—the Fed's fluctuating policy stance, global supply chain disruptions, or potential recessions—are the reasons sophisticated investors look for advantages. The adage "be greedy when others are fearful" is not just rhetoric; it's the core of contrarian investing. But to execute on this mindset, you must prioritize investing, not delay it for the sake of other distractions that the world can throw at you.

Competing interests in both business and personal life can often divert attention away from portfolio management. But investors who let other responsibilities take precedence over disciplined market engagement will inevitably find themselves reacting to events instead of shaping their future. A CEO cannot afford to ignore investment decisions just because operational concerns or day-to-day business issues seem more immediate. Asset allocation and strategic positioning should be ingrained in your daily thinking. Without this, the compounding effects of long-term investment will elude you.

More importantly, today’s macro challenges require investors to fine-tune their strategies continuously. Sector rotation, cash flow analysis, and geopolitical risk mitigation are just a few of the elements that demand your constant attention. Navigating today's landscape means focusing on both tactical and strategic moves, staying ahead of inflation, identifying growth sectors, and ensuring portfolio resilience. This is not the time to put off investment decisions until after you "deal with other things." Instead, those "other things" should follow after you have ensured that your capital is well-positioned.

Investors who succeed in difficult environments maintain an unwavering focus on long-term wealth creation. This focus must take precedence, especially in an economy where every other factor—whether inflation, supply chains, or interest rates—seems unpredictable. Investing is not a task to squeeze in between meetings or defer until the headlines are more positive. In fact, waiting for clarity often leads to missed opportunities.

Sophisticated investors understand that the economy will not wait for perfect timing. The winners in this environment will be those who recognize the critical importance of investing first, before other pursuits take over. Whether through equities, bonds, or alternative assets, maintaining an active, hands-on approach to managing your capital is more important than ever. If you make investing your priority, the future will reward you for that foresight. If you wait for "the right moment" to invest, that moment may have already passed.

This is not a time for hesitation. It is a time for action. Invest first. Then, handle the rest.

The information contained in this Higgins Capital communication is provided for information purposes and is not a solicitation or offer to buy or sell any securities or related financial instruments in any jurisdiction. Past performance does not guarantee future results.

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