“Nice article. My continuously biggest mistake has been to decide not to invest and then watch the stock triple and double… Every time you rethink… but now it’s too dear….. and it keeps rising and rising..”
This was in response to an article in the FT, written by a fund manager.
Its a story about timing. An investor clearly became anxious about their investments and withdrew from the market. There was then ongoing anxiety when to go back into the market. By looking back the investor wished they had not sat on the sidelines waiting for the ‘right time’ to invest. In fact, so many DIY investors fall into this trap. The answer is not ambivalence though. You often hear the argument that you should not sell and in principle, I agree, but that is based on the presumption that the assets you hold are the right ones. The point is that you review your investments irrespective of market fluctuations. If markets fall and you have the right investments, then the chances are that time will allow assets to recover.
To review investments, you need a plan. When I ask to see it, investors say the plan is clear in their head. That is not the same as a written plan. To reduce anxiety, always have a written plan.