Waiting For The Bottom to Invest?

There's nothing like finding a good deal. You feel like an absolute winner tracking one down. Purchases feel more special as they're paired with a sense of accomplishment. Food tastes better. Clothes look sharper.

The opposite is also true. A bad deal feels foolish and taints all that's associated. No one wants to get ripped off. As investors, this aversion can make us hesitant to invest during a bull market.

Today's market feels frothy. The market is constantly rising and bubble talks dominate the airwaves. To invest right before a market crash would be devastating. The ultimate rip-off.

"I'll wait for things to settle down" is a common sentiment. The problem is, no knows when that will be. Meaningful pull backs are few and far between. Unlike retail, deals don't happen on a schedule. Waiting on the sidelines means risking significant growth. All time highs are typically followed by more all time highs. Missing the best market days can be costly.

Also, there's no guarantee you'll be able to pull the trigger when a crash does come. Crashes are scary. When everyone's running for the hills, do you have the conviction to invest? Especially when you've gotten comfortable sitting on cash. Maybe again you'll want to wait for things to settle down.

There will always be risk no matter where we are in the cycle. The key is to have a risk appropriate portfolio that you can invest in all the time. Over the long term, things will likely work out. Ignore the noise and just be consistent.

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Step One is Knowing

In school, we listen to our teachers. At home, our parents. Throughout our childhood, following instructions is praised and rewarded. When we're young, there's value in this. We don't understand how the world works quite yet, so guidance can be lifesaving. The bias to just accept obviously has drawbacks. Insert old jumping off a bridge adage . This conditioning is especially strong for kids from lower income households. Their parents are more likely in working class jobs involving strict order-taking. Parents of middle-class households tend to be knowledge workers where influence is essential. Studies have shown kids from middle-income households are more willing to negotiable with their teachers. They learn from their parents that things are not set in stone. This leads to better grades and learning outcomes when compared to their lower income counterparts who don't negotiable. In business, if we simply accept things as they are, we would never innovate. In work, w

Herman Ye

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