I frequently come across people who are still stuck in the world where they wish to know the magic stocks which will pay for their dream holidays, etc. It is odd that after months of falling markets people are most likely on losses and yet are looking for more risks.
Had you been defensive you would have saved your capital. It takes years for beginners to learn. One behavioral problem is the dream of easy money and instant gratification. So buying a stock in a meandering market also looks enticing. Most investors are sitting on losses on investments made in the past 8-10 months. Yet they continue to ask for more stocks to buy. They are expecting tips and not value buys. Even the professionals I meet are making losses.
I guess people are confident of their business and wish to continue investing which is a good sign.
I also find that all investors now inquire about gold (which I have been selling). I must admit that to watch everyone show the same predictable behavior like clock work is amazing. Chasing increasing asset prices late in the game is risky.
I made a 30% return in 2 days SHORTING silver (a 3x leveraged fund). Few years back I made an almost 1200% return in 2-3 months leveraging silver on the way up. But I sold timely and kept the profit.
To draw the line on greed is a tough task. To learn these behavioral traits takes time. It is obvious that people wish to learn through pain. Most infact will never learn. They have only themselves to thank.
Finally at the bottom of the market they smarten up....and invest in fixed deposits and debt IN A BULL MARKET !
Incredibly most people will live their entire lives like this.
So what have I been blogging? Read it. You would have been up for the year if you followed it. I have been writing about macro. A change in asset class.
I must confess that inspite of the falling market, I too have attempted to buy. But on failure of my investment thesis, I have to humbly admit my mistake and exit. Thats precisely how I am up for the year.
Had you been defensive you would have saved your capital. It takes years for beginners to learn. One behavioral problem is the dream of easy money and instant gratification. So buying a stock in a meandering market also looks enticing. Most investors are sitting on losses on investments made in the past 8-10 months. Yet they continue to ask for more stocks to buy. They are expecting tips and not value buys. Even the professionals I meet are making losses.
I guess people are confident of their business and wish to continue investing which is a good sign.
I also find that all investors now inquire about gold (which I have been selling). I must admit that to watch everyone show the same predictable behavior like clock work is amazing. Chasing increasing asset prices late in the game is risky.
I made a 30% return in 2 days SHORTING silver (a 3x leveraged fund). Few years back I made an almost 1200% return in 2-3 months leveraging silver on the way up. But I sold timely and kept the profit.
To draw the line on greed is a tough task. To learn these behavioral traits takes time. It is obvious that people wish to learn through pain. Most infact will never learn. They have only themselves to thank.
Finally at the bottom of the market they smarten up....and invest in fixed deposits and debt IN A BULL MARKET !
Incredibly most people will live their entire lives like this.
So what have I been blogging? Read it. You would have been up for the year if you followed it. I have been writing about macro. A change in asset class.
I must confess that inspite of the falling market, I too have attempted to buy. But on failure of my investment thesis, I have to humbly admit my mistake and exit. Thats precisely how I am up for the year.
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