There are just a few days left in 2018 and it’s tempting to make some last minute moves to improve your annual results in the old portfolio. But is it a good idea?
This is obviously not my first ‘last few days of the year’ experience as an active market participant. I know the feeling, trust me. I’ve made the mistakes. I’ve gotten cute. I’ve overextended myself in late December for absolutely no reason. It’s those scars that I keep with me after all these years that remind me not to do it. It’s like a kid with a hot stove. After he gets burned once, he won’t ever make that mistake again!
The financial media loves to make you feel stupid for missing out on certain moves. Your friends and neighbors like to remind you about how well their portfolio is doing and all of their brilliant investments. It’s easy to get caught up in this nonsense.
I like to observe. It’s amazing how much you can learn if you just shut the F&$% up and pay attention. What are the most successful investors doing this time of the year? Are they pressing their trades and initiating new ones? Or are they spending time with their friends and family? Are they running office meetings on December 28th or are they on vacation on a boat somewhere?
You’ve had almost 12 months to make money this year. You’ve had plenty of time to do the right thing and make the right decisions. Is NOW the time to make up for any mistakes? I’d argue, no. [Read more…]