We’ve all been there. Stuck in traffic. Blood pressure rising. Four lanes apparently nowhere near enough to efficiently funnel all the vehicles to their intended destination. You cannot fathom what in the world is causing this crawl of a pace. In a desperate attempt to expedite your trip, you quickly weave into the paralleling lane that appears to be moving faster than yours. Five seconds later, you are hitting the brakes and coming to a standstill while – you guessed it – the lane you just left has now picked up the pace. You, of course, would have been better off staying in your original lane. How’s your blood pressure? Probably elevated just from reading this.
Getting from one place to the next requires some degree of patience and, certainly, a plan. Trying to guess which lane is the fastest often leads to undesirable results with significantly elevated risks, namely, accidents, tickets, and maybe a twinge of road rage. Investing is much like this traffic scenario. Drivers and investors both tend to make small and inefficient moves from one lane or investment to the next. After a short period of time, if one is not meeting our expectations, we quickly try to switch to another option. Ironically, most everyone else is trying to do exactly the same thing you are …gain an advantage … at significantly increased risk and cost. In the end, more times than not, we do not arrive at our destination nor realize our goals as quickly as we would have had we just stayed the course. What’s more, it is unquestionably less dangerous and less stressful to drive and invest this way.
The message is simple – stick to your lane, stay diversified, and enjoy the ride!
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