This subject remains an investor problem. Despite repeating the same message over and over.
Successful investing is not, per se, a portfolio problem, but rather a people problem. No matter how well designed and engineered a portfolio is, it can easily be destroyed by imprudent investor behavior.
Unfortunately, the true enemy of every investor lies within.
The instincts, emotions, and even biochemical makeup of human beings drives them to gamble and speculate with their money, even when they don’t mean to.
This problem is multiplied exponentially by financial institutions that profit from this self-destructive cycle. You will see that this cycle is hard wired into every human being in the world. No one is exempt.
After studying the collective behavior of thousands of real world investors over the past decade, several truths have made themselves clear. It is my belief that many, if not most financial product sponsors are aware of this dilemma,
but either don’t care that the investor is harmed by it,
or are ignorant of the damage that they unknowingly perpetrate on the American investor.
Most, if not all of us, need help and guidance during times of market stress. These stressful times are inevitable and need to be dealt with without panic.
This guidance is best found with an investor coach/fiduciary adviser. Your coach will help you protect the future you from the current you.
As individuals, investors have a tendency to believe that when times are good, they will always be good. And when times are bad, they will always be bad.
To take full advantage of the great returns available from the equity markets we deal with the negative volatility. Many believe there is someone who can avoid the negative times and only participate in the good times. This is unsustainable consistently.
I call this market timing and it is gambling and speculating. Which, as I mentioned, we need to avoid.
To succeed in investing you must own equities……globally diversify….rebalance.