This is an interesting article about keeping a long-term perspective when you are investing (of course you must also pay attention to the short term, but don’t invest it all thinking about the short-term). It fits well with my blog about the four most dangerous words in investing (It’s different this time).
I welcome your thoughts.
One of the things I have taught myself to do over the years was to think in different time frames. This includes very long geological epochs and astronomical eons.
Maybe it was an interest in dinosaurs and astronomy as a kid, but historical time frames was a concept I was familiar with. Perhaps that was the basis of this week’s time frame discussion of Trading vs Investing. Understanding the very l o n g term is an important concept, in terms of getting what the long cycles can look like as well as crowd psychology.
These days, the crowd is suffering from a malaise. They are fearful of losing their jobs, not interested in buying homes, deeply concerned about the future. Following a Great Recession, this is to be expected. So too is the rise of the End of Worlders and the Zombie Bears. These folks are best ignored, as they are money losers who can damage your outlook.
Read the complete article here: http://ow.ly/aoWAm