All-or-nothing approach to investing has to stop
This is almost always costly as it leads to much greater volatility in investment outcomes, increases stress levels and reduces the likelihood of staying the course and achieving your financial goals
[SINGAPORE] Over the past few weeks, I have been travelling around Asia to share our H2 outlook “Positioning for a weak US dollar”. One thing I kept coming across is an all-or-nothing approach to investing.
Such an approach is almost always costly as it leads to much greater volatility in investment outcomes, increases your stress levels and reduces the likelihood of you staying the course and achieving your financial goals – which is, in short, a lose-lose scenario.
I believe this trait stems from focusing too much on things going right, and considering only the downside risks after the fact – that is, when faced with significant losses. Then the conversation becomes very difficult.
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