I periodically recycle old posts on my blog to ensure that new clients can benefit from valuable content they may have missed and this post is one such example. It is early morning on Sunday and I’m thinking about the economy and the markets in the fast-paced world of finance. I know I should not be.
Well, an addiction this poor soul cannot seem to shake. The Lunar New Year celebration is over, leaving behind cherished memories of family gatherings and the tantalizing aroma of festive dishes.
The lively lion dance, with its symbolic movements and rhythmic beats of drums and cymbals, has taken its final bow. While the official celebrations may be over, the spirit of the Lunar New Year lingers on.
Investing is much like discussing money issues with your spouse. It can be difficult sometimes. As I have told people for years, if you are waiting for all the uncertainty to go away you are never going to invest in anything again. So, volatility or uncertainty is just something we all have to learn to navigate.
In my work, I always attempt to seek out articles and reports that challenge my current thinking. I do not read articles that are written to scare us witless and sell advertising. Some feature conspiracy theories. It is entertainment and confirmation bias.
I do not work alone to keep my investors informed. I am connected to a variety of industries, analysts and partners. With hundreds of years of collective experience in the industry, we communicate regularly.
There are many things that could go wrong even in a bull market. Some people expect things to go up every day. Fear is sometimes very helpful. If fear is not an emotion that people possessed, people would be even more prone to doing silly things than they already are. However, irrational fear is not healthy at all.
If you want your money to sit and do nothing safely then there is always the bank or fixed deposit. People who fear change will lose out to optimistic explorers. I do not compare my portfolio performance against the fixed deposit over a cycle.
To put things less inflammatorily, beware of those who pooh-pooh alternative investments like hedge funds all the time. Take it seriously at your own risk. It is a matter of education.