This post is a sequel to one I wrote a few weeks ago about the ‘external perspective’. As I said then, I think it’s important to challenge yourself by looking at investing from different perspectives. I’ve found that this can be a useful way of gleaning insight. I want to follow up my previous post by looking at a more fundamental question for which there are also multiple perspectives: ‘how should you think about your investing strategy?’ Continue reading
The market correction we are currently experiencing is not showing any imminent signs of abating. Significant market corrections can be self-fulfilling in nature, as fear leads to falling prices, which in turn can lead to further fear of further price falls. This vicious circle can happen even if the original fears are not well founded, as I believe to be the case now. It’s hard to predict how long the bearish conditions will last. The fact that valuations are still pretty high compared to historical averages suggests there is scope for prices to fall further. On the plus side, an environment of excessive pessimism seems to be building and I can see a few potential catalysts on the horizon that could lead to a sizeable rally in the not too distant future.
I made my scheduled trade last week, selling Accesso Technologies and buying Auto Trader.
I’ve been very busy for the past couple of weeks with my day job, which has become pretty hectic. This hasn’t left me much time to write blog posts – I’ve restricted myself to simply updating on my trades until things quieten down. I have a few ideas for some more interesting strategy-related posts but probably won’t have time to start getting them down until mid to late November. Stay tuned. In the meantime, I have one trade to update on from last week: RWS Holdings. Continue reading