I have perhaps exaggerated a little to make my point but the broad view is true. I speak a great deal with both Fund mangers and investors – I am always interested in understanding their view of the market. Right now most Funds are fully invested, on the other hand anecdotally I hear stories of new investors saying they are in the process of opening up a margin-lending account. I don’t discourage that but rather signal caution after markets have had a good run. It is a time to be more cautious, develop a discipline and continue with skill and knowledge development through education. Opportunities will abound but skill will be required to pick the long-term movers.
In later issues we will look at the psychology of investing and risk management – two factors that contrast the Fund Mangers and general public approach to successful trading.
In the meantime, enjoy the ride!