August 25, 2009
A recent WSJ article revealed the results to a Gallop Poll that asked: “Do you think now is a good time to invest in the financial markets?” In February of 2000 – just before the disastrous dotcom bubble burst in March 2000 – 78% of investors believed it was a good time to invest. Then in March 2003 – just before the S&P 500 embarked on an 88% increase through mid October 2007 – 41% of investors agreed that it was a bad time to invest.
Clearly investor sentiment is not a reliable gauge for when to buy and sell. This is why I preach AND PRATICE a disciplined portfolio approach to investing. Take emotion out of the equation and you’ve got a much better chance of achieving your goals. That said, if you don’t have a plan to reach your goals, you’re just plain lucky if you achieve them.