At some time during the recent bear market did you sell most or all your investments to cash? Or maybe have you been holding out on your regular investment plan because you haven’t felt comfortable? Watch the video below for some insights into how to decide when to start investing again.
At some time during the recent bear market did you sell most or all your investments to cash?
Or maybe have you been holding out on your regular investment plan because you haven’t felt comfortable?
If you made that decision based on an emotional trigger such as “feeling tired of losing money” then you face the real predicament of getting back in too late and missing out on big gains which often come in the early days of an economic recovery.
Watch the video below for some insights into how to decide when to start investing again.
“Investors wiped another 5 per cent off the Australian share market…”
So was the opening sentence of the front page article of The West Australian newspaper yesterday (9th October 2008).
It should have read:
“Anxious, emotionally fragile, short sighted sellers wiped…”
Movement in the share market index is based on actual trades completed. For every seller there is a buyer.
Buyers are always out for a bargain – it’s human nature. So would-be-buyers submit a bid below what they think the item is worth just hoping for an anxious seller to come along.
The “investors” at the moment are the buyers with long term vision and emotional control. They are not the ones wiping 5 per cent off the share market.
Revered investor, Warren Buffet, is often quoted as saying “the markets are a very efficient mechanism for transferring wealth from the impatient to the patient.”
Wealth creation is a long term game. Whatever you do, do not push the panic button!
“The revelation that hormones may play a big part in market behaviour explains a lot of things.” So begins an interesting article by John Beveridge published last week in the Herald Sun in Melbourne. The following cartoon, which accompanied the article caught my attention and made me laugh:
Read the full article here.