“Invest against the grain.”
Steel – The Investor’s ’10 Foot Bargepole’ Test
Exactly a year ago “pessimists” were fretting over what they called an “expected hard landing” (whatever that is) in China, doubling it up with “deflation fears” in the West.
Anybody noticed that suddenly it’s Inflation Fears, Brexit and Trump that’s renewed their Valium prescriptions? (One good thing about these folks though is that their elbows and rear ends are interchangeable).
Confusingly for them, global growth is still expanding. As it does most of the time.
Now, presumably thanks to their constantly wrong predictions of doom, “experts” decree it’s impossible to forecast investment returns.
But here’s an observation to think about….
Miller – Why do investors flock to websites that offer the least helpful information?
That’s not an impossible question to answer. But to understand why this happens you have to realise that investing soon reveals your every character flaw, and then charges you dearly for the experience.
That’s because we are, at our very core, governed by our Amygdala or “Lizard Brain.”
It’s like an adrenaline sponge that sits in the middle of your skull and works like an early warning button for approaching danger.
And while it may have saved your ancestors on the Savannah Grasslands millions of years ago, it’s the biggest problem any investor will have to overcome to be successful.
In fact, it’s probably the single best reason for hiring someone you trust to invest your money well for you, and stay the course during times that you probably would have cut and run…
Batnick – When You’re Not In A Bear Market, You’re Waiting For One To Arrive
It’s a certainty that most investors suffer from what Mike Williams of Genesis Asset Management / Demogronomics refers to as “Market Altitude Sickness.”
What that means is that the higher the market goes the more focused the investor herd gets on how far there is to fall.
Success makes cowards of most everyone and leads to vain attempts at timing the market.
Don’t. You already missed what has essentially been two stock market bears embedded in the last eight year bull market run.
But did you notice? Nope. Most folks never even stepped into the ring after 2000/02 and 2008/09.
And Michael Batnick is going to tell you what you’ve missed…