“We are just plagued today with the lack of long-term trends, and it’s because of people reacting to the issues of the day. You get long-term investors trying to anticipate what hedge funds are going to do-and not do-so they don’t get caught on the train tracks.” -Jim Sarni, managing principal, Payden & Rygel
This quote highlights the need (again) to create a plan for your investing and then execute the plan, rather than trying to guess what others will or won’t do. As Napoleon Hill pointed out in Think and Grow Rich, failure and defeat are nothing more than the failure of a plan. Change your plan and try again until you get it right.
Sources:
Risk On/Risk Off Trade Returns
Barry Ritholtz – The Big Picture
http://www.ritholtz.com/blog/2011/03/risk-onrisk-off-trade-returns/
The Safe Investing Blog 