Like everyone, I have passions outside of my family and work; perhaps the greatest of which is mountain biking. Most mornings I'll be on the trails of Mt Coot-tha with a great group of fellow addicts before sunrise - a chance to disconnect my mind, listen to my body and be one with nature.
This morning was no different, but after yet another 24 hours of volatile markets the slippery trail conditions seemed particularly pertinent to what we are all feeling.
What to do? Slow down, vary my line, tip toe through the hazards, or maybe just get off the bike and walk - I don't really need another coffee! Perhaps I should go faster, take a different trail, I think there is a shortcut along here somewhere, I might get ahead or make up some of the time I've lost.
If you ride, you'd know that any of these snap decisions would likely increase the risk of significant injury, and so it is with your investment strategy. The best strategy, assuming you do want the coffee at the end of your ride, is to commit to the line you know so well having ridden it many times before.
Difficult, absolutely - probably the hardest thing in life is make a decision to do or say nothing, but how often has it turned out to be the right choice in the end?
This is not to say you won't slip off your intended line, it might get a little "hairy" when the world seems to slip from under you, but this is not the time to panic. Rather a time to "rebalance" as many should consider over the coming days / weeks with their portfolios, so they remain positioned appropriately when markets turn.
If you haven't ridden this trail before, my recommendation is to make an appointment with a good financial adviser. Part of their job is to make sure that next time it rains you can commit to the line.
Unfortunately you will still slip from time to time, but the coffee will taste good.
|Tags: Investment Stock market|
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