I’ve posted entry #7 to my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s called You Invest Poorly for the Same Reason You Spend Too Much.
Juicy Excerpt #1: We’re human. We are affected by advertising. The people who develop marketing campaigns know what they are doing. They appeal to the emotions and they repeat their message thousands of times. That’s what works (for them, not for us). Long-term market timing is what works for us. Market timing is required for long-term investing success. But most of us invest in the way that the industry marketing campaigns tell us to invest. This needs to change. We need to start talking about this sort of thing more frankly than we ever have before.
Juicy Excerpt #2: I’ve only heard of long-term market timing within the last 2 years, and I studied investing pretty regularly (both in school and on my own). So I think people need to learn that you can time the market based on valuations and not just on a tip from a guy who knows a guy.
Juicy Excerpt #3: The average investor listens to the media and is fearful when others are fearful and greedy when others are greedy. The very opposite of what Warren Buffet would suggest – and we all know his track record!