The year gone by has not been a happy one for equity investors. But such is the nature of the game. Equity returns are lumpy and not linear. Sharp bursts of performance are followed by periods of slumber. Investors, who are lured into purchasing equities due to their outsized recent returns, often end up disappointed. This leads to widespread aversion towards equities, which in turn sows the seeds of the next bull market.
While shifts in market cycles rarely coincide with the turn of a calendar year, this is as good a time as any to re-orient ourselves and jettison certain calcified behavioural tendencies which may be detrimental to our financial well-being. Continue reading