Quote:
Originally Posted by flamesfever
You are absolutely right. The best thing is to get to know yourself, your risk tolerance and investment tendencies. I know I am too conservative (comes with age) and have trouble with "paralysis by analysis". My wife has always advised me to trust my gut. It came from years of telling her that my gut tells me to buy such and such, and I wouldn't and it would go up.
At present, my investment philosophy is simple i.e. to buy quality stocks like banks (RY, TD), railroads (CP, CNR), telcos (T. BCE) oil and gas (CNQ, TOU), Gold, etc. and hold them for long periods of time, and to vary the amount of cash depending on how I view the future.
I have no idea what the market is going to do in the next year or two. I think a lot of stocks are reasonably priced, however with a probable upcoming recession, there is a good chance that there will be an opportunity to add to portfolios in the future.
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Most people feel they can make rational decisions, and think they can control the process. Almost all are wrong. Regarding the bolded, this is no doubt how you act most of the time. The problem is that, when things get difficult - really difficult - we can no longer act rationally.
Conscious thought, and conscious control of our actions, constitutes a much smaller percentage of our total thoughts and actions than we would like to admit. At the best of times. However, under stress and pressure, we almost invariably lose total control of conscious thought and the ability to maintain conscious actions. When the chips are down, we all lose control, and our emotions run the show.