Stay in Your Lane
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This week\'s blogpost - https://bahnsen.co/44yuUnl
\\nDo you ever notice those habitual lane-changers in traffic?\\xa0 There is a lot of activity going on, but they make little progress.\\xa0 There doesn\\u2019t seem to be a correlation between how many times you switch lanes and a reduction in your drive time.\\xa0 Often you will observe \\u201clane change regret.\\u201d\\xa0 The driver sees opportunity, so they get over, only to then realize that their former lane is now taking off.
\\nInvestors today are trying to change lanes in traffic, and they will inevitably experience\\xa0lane change regret.\\xa0 How do I know this? Because investors on average \\u2013 myself included \\u2013 are horrible at trying to time markets and what we are talking about is exactly that, market timing.
\\nThe peaks and troughs of markets are driven by extreme sentiment; peaking in irrational exuberance or greed and reaching a trough at levels of excessive fear.\\xa0 Lane-changers aren\\u2019t enticed back into markets at the troughs, yet it is a fear that lures them back in, a fear of missing out (FOMO).\\xa0 This FOMO, or point of capitulation, tends to come after a rise or rally in markets, which is often an expensive re-entry point.
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