The unemotional investor

It is sometimes said "be an intelligent investor, you must be unemotional." That isn't true - you should be inversely emotional - see the enthusiasm of others as a yellow caution light, and their misery as a sign of hope.


The true investor would be pleased, rather than discouraged, when the market is down allowing for the investment of new savings on very satisfactory terms. During the accumulation period (your working life) investors would be "fortunate" to benefit from the "advantages" of a long bear market.


Does dollar-cost averaging ensure long-term success? This policy will pay off ultimately, regardless of when it is begun, provided that it is adhered to conscientiously and courageously under all intervening conditions. For that to be true, the dollar-cost averaging investor must be a different sort of person from the rest of us, not subject to the emotions of exhilaration and deep gloom that have accompanied the gyrations of the stock market.


This doesn't mean that you can't resist being swept up in the gyrating emotions of the crowd (or the pressures of your spouse) - it means that few people can. To be an intelligent investor, you must have confidence that can only comes from a deep understanding of the value of what you are invested in.


Don't let the crowd lead you to buying and selling and the wrong time. Contact us to help you balance your risk tolerance and return objectives.