In addition to the summer holidays being a great time to wind down and relax with family and friends, it can also provide the opportunity to consciously reflect upon how you are spending your time. The longer people live and the longer they work, the more they appreciate that time is our most valuable resource and we never seem to have enough of it to do the things we want to do.
Here’s some good news for investors. With a few straightforward New Year resolutions and strategies, they can become better investors and better managers of their personal finances.
“Prediction is very difficult, especially if it’s about the future.”
—Niels Bohr, Nobel laureate in Physics
A hallowed media tradition in this season is to provide a neat summation of the 12 months just gone and to ask experts to share their “outlooks” for investment markets in the year ahead. How much faith should you place in these forecasts?
In early-2015 investment blogger Ben Carlsen wrote a piece called The Psychology of Sitting in Cash where he tried to answer the following reader question:
I took one piece of advice from a close friend that the market was too high and that I should go to cash and wait for a correction. I am still waiting. How do I proceed from the position I have of feet embedded in concrete?
In Leo Tolstoy’s great novel ‘War and Peace’, a Russian general charged with defeating Napoleon and expelling the French from Russian soil argued against rushing into battle, saying the strongest of all warriors were “time and patience”.