What is the most important thing an investor must avoid doing now?
The answer is actually very simple. An investor must not overpay now. The reason for that being more important now is not too difficult to understand. When the global macros are heading into rough weather and local macros aren’t looking to be improving anytime soon either, investors must start thinking of aligning their investing to the macros.
Your investing must factor in the macros, or look for ways to derisk from the macros. When the markets start seeing red, an investor must be ready to think amber. Your conviction must start working towards decisions when the markets move away from decision making.
Developing the required temperament to act decisively in difficult times is a running challenge for most investors. This is a market phase when one must not fail to develop the right traits, the desired temperament and the supporting skills. Investors must spend time away from actively obsessing about markets in the present context and think beyond the immediate. Preparation is the essential ingredient of investment success and this is the perfect time to ensure one is adequately prepared
