Seek Scale

“Discipline is the bridge between goals and accomplishment”- Jim Rohn

Investing is a boring business. We need to carry enormous patience along if our investment journey must meet its milestones and reach the end destination. Our impatience often makes us do things that hurt our investment outcome. Investing needs to be aligned to the economic cycle. When the cycle is down, we need to invest aggressively in equity. Yet, most of us don’t build enough conviction to invest adequately. The next best thing to do is to play the recovery phase of the economic cycle. If we missed the bottom, the recovery phase gives us a window to make amends and raise our equity allocation. The economic cycle is slow and recovery is arduous. Markets seldom pace their moves in sync with the cycle. Stock markets either run ahead or lag behind. Now, the stock markets are a bit ahead of the economic cycle. But, one could either see the markets slow down or the cycle gather pace. The good news is that recovery is a phase that gives you ample time to make amends. Make your choice sensible.

Investment Strategy: Prepare to achieve scale in equity