So, shares are back in fashion?
What’s worth talking about?
So, something amazing happened this week.
All of sudden, people have started talking about shares again! They are generally wanting to start to invest and shares are back in fashion!
I find it really strange that the same people, who normally only want to shop for clothes during the Boxing Day sales and are ordering a lot of things online, for some reason always want to invest when companies are looking to sell at full price and sometimes even have a premium price tag on them.
Why is this the case?
Hopefully those of you who have been through an Investor Education session with us know that this is a classic case on the investor psychology curve.
People always want to buy when investments are ‘back in fashion’ and not when they are out. The problem with this is that you are buying high and selling low.
All this being said, I actually think this rally could keep on going due to the herd mentality we are familiar with, but I would be a lot more comfortable investing at these prices if I knew that for the last two years I had been regularly investing each month into the same investments at a lot cheaper prices and I am now sitting on going gains. I wouldn’t want to be in the position of having a large cash balance now and seeing my interest payments being nearly halved and wondering if I should invest because of fear of missing out.
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What I have learnt from you
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Disclaimer: Information contained within this article is of a general nature. Do not be rely upon it when making financial decisions. Please consult a professional financial advisor or planner (like us!) before acting.