The Ignorant Investor
Ignorance Can't Stand in the Way of My OpinionTuesday, October 25, 2005
What should we be doing now?
I'm writing this down now as a reminder to myself. One of the dangers in following the financial news day to day is that it's easy to let short-term gyrations distract us from focusing on the likely trends that really drive returns from year to year. What you should do now is look out a year or two in the future:
What should the asset allocation be in 2006?
What types of assets or particular sectors are now trading below their long-term averages?
What are the risks of the market tanking versus the probability of it trading in a range or moving upwards?
Are there any investments that I've ignored out of my own ignorance?
Point is, for anyone but the short term trader, what you do now in investing is based around what will happen over the next few years, not just tomorrow. You've got to adapt your planning process accordingly.
What should the asset allocation be in 2006?
What types of assets or particular sectors are now trading below their long-term averages?
What are the risks of the market tanking versus the probability of it trading in a range or moving upwards?
Are there any investments that I've ignored out of my own ignorance?
Point is, for anyone but the short term trader, what you do now in investing is based around what will happen over the next few years, not just tomorrow. You've got to adapt your planning process accordingly.
posted by Worker 17 # 2:52 PM 
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