Saturday, October 25, 2008

Having A Flexible Investing Mindset

Great advice posted by Brian Pretti on his editorial posted on FinancialSense market wrap: Changing the Frequency

  • I could go on and on with the examples of this concept, but you get the point. Remaining flexible here is key. Remember, I said flexible, not cocky. And not contrary just to be contrary. We have some bad economic numbers to come. Consumers are hurting with very little relief in sight. The financial sector remains a mess, and in a number of specific cases, perhaps a few black holes. As I said, real marginal change may be years away for all I know. Personally, I don’t see any yet. But, that doesn’t mean I’m not starting to look. In fact this is exactly what I’m doing. At worst, I’m wasting my time. Quite the inexpensive exercise in monetary terms. But I don’t consider it a waste at all. In my mind, real change at the margin is almost always unseen by the crowd. But importantly, it is seen and discounted by the markets. I just need to remind myself in periods such as this that remaining absolutely rigid and unbending in any one direction is a poor investment stance. Humility and flexibility - don’t forget.