The most profitable part of a new market regime is how long it takes most investors to come around to it.
Humans are creatures of habit.
It’s not easy to just shift an entire mindset, especially one that was over a decade in the making.
“I’m a Growth Investor”
“There is no reason to invest outside the United States”
“Stocks & Bonds. What are Commodities?”
“Why would I invest in Gold, when I can own more Tech?”
“The government will never let Crude Oil get to $200”
These are all things people say and actually believe.
It’s taken a long time for people to convince themselves of these.
But over the years, I’ve learned (the hard way) that there is a time and a place for everything.
The bet we’re making is that people will continue to believe all those things mentioned above, until it’s too late. [Read more…]