Perhaps I have finally learnt

When, oh when will I ever learn?

Hasn't it happened before? Whenever I begin muttering to myself "Gone Crazy" once, twice and perhaps everyday for a week or weeks in a row it is The TIME to take some money off the table/stock market. And yet no, I have not learnt and will perhaps never ever learnt. And then in a mere 2 weeks all the gains from the beginning of the year was wiped out. I remembered distinctly how I actually laughed in glee way back in late 2007 whilst uttering "Gone Crazy!" "Gone Crazy", in a seemingly never ending euphoria for months before it was brought to an abrupt end followed by prolonged bewildered cries.

Three factors account for the failure to act (realise some profits), one-lack of confidence in one's own judgement, two- greed and fear of losing out further profits and three- inertia. The recent correction in the market has made me reviewed my investment strategies. What I actually meant is to review my approach in managing my investments such that it blends in with my present lifestyle or intended lifestyle. So I have to get to the truth in me whether I want money as an end in itself or as a means to an end and if so what type of ends (including an insatiable need to feel secure?). Then the next question is how much time I want to allocate to achieving this end (given that my religious teacher often cautioned against impermanence, uncertainties and what truly matters at the real end). Having decided on the time to be allocated and the information that can be realistically gathered within such time-frame I can then select the appropriate approach and type of investment strategies. To do this our habits must also be taken into consideration. For instance,if we can only feel comfortable spending the returns on our principal (foolish baby boomers often fall into this trap) we should then go for dividend yielding stocks and not growth/undervalued stocks (unless you are a brave trader). Buy growth stocks for what? Just to get the satisfaction of seeing a growing figure in your CDP statement whilst limiting yourself to the cups of Starbuck coffee per month?

Jim Rogers commented "I would start by looking at things that are depressed rather than things that are going through the roof". Hmm...For me I just want something that consistently delivers my daily bread. Yes I may miss the roller coaster thrill of bottom fishing, roof hitting and cliff plunging; but those are for stronger hearts not mellowed ones.