Elk season is in full swing here in Southwest Colorado. You may have read my blog last year suggesting that hiring a guide is the best way to be successful – whether it be with your retirement portfolio or with filling the freezer this winter.
In any event, a funny thing – well, it wasn’t so funny at the time – happened this week while hunting that made me think of all the rhetoric in the media right now about market timing systems.
You see, market timing feels to me like an emotional way to cut corners. A way to not put in the time and effort to be disciplined to a strategy. I recognize that this is a very over-simplistic viewpoint, yet for investors-at-large, I feel the shoe fits.
And the shoe is this: Cutting corners with your portfolio because the disciplined hard stuff is just that – hard – is no way to invest your hard earned dollars.
The funny event was Saturday evening, when I went out hunting just a little bit later than I would’ve liked to. AND, truth be told, I was pretty tired and worn out from all the hiking and stalking and canvassing since Archery season opened August 30th.
So, I decided to take my 4WD up a road that appeared to get me half-way up the mountain I needed to climb in order to find the elk I saw earlier in the day.
What ensued was a quick drive up, and the road then led to a nicely-travelled, easy-to-hike and mentally non-taxing foot path that led me…well…in the WRONG DIRECTION.
You see, the road up was heavily wooded (think media, noise analogy) – clouding my judgment as to where I was actually headed.
Further, how quickly I was able to ascend as it was much easier than the hiking up (think timing the markets to sell to cash just because you’re nervous and it feels good analogy) – clouded how far up I was in relation to where I actually wanted to be.
What eventually happened? My evening hunt was over before it began.
AKA…ZERO RETURNS. I ended up much higher and further north than intended simply because I started late, was tired and didn’t want to put in the tough hike.
All this happened because I drove (I cut a corner to speed things up).
Don’t let your investment management fall victim to timing the market with corner cutting, “speedier” methods that most often use emotional, knee-jerk, actions-that-fit-my-emotions-right-now trades.
If you’re “late to the party”, take a breather and regroup with data and facts to steer you to exactly where you want to be.
If you’re feeling pressured by media and noise and simply want to act just to act, step back and review the few market indicators that lead us to make major portfolio shifts.
Or more importantly, call an Alphavest advisor and get a temperature reading on the market and the indicators we follow. Our 15 minute consultation is free!
In the meanwhile, whether hunting or investing, don’t create a strategy that suits your needs for the day – or employ a strategy that’s based on emotion.
Choose the way of the Liberated Investor, and the hunt for the best strategy will be over!