It is one week into 2007 and it is not too late for New Year’s resolutions. Here are ten new year’s resolutions for irrational investors from Paul Farrell of MarketWatch. I say it should be lifetime resolutions for irrational investors. For passive investors, achieving them is piece of cake, except point 10 because no-load index funds do not exist in Singapore and probably spell obscene to commission-based fund distribution channel.
- OK, say it out loud: ‘I am an irrational investor!’
- Yes, I know I’m running a handicap race against Street pros
- I will never again try to predict our unpredictable markets
- Yes, I’ll be optimistic about my life, but not the market
- I will focus on the long term and stop active trading
- I resolve to live ‘below my means,’ saving 10% for retirement
- I resolve to trust nothing I read in the media
- OK, I know my broker’s advice is always biased in his favor
- I promise I will build a well-diversified portfolio
- In 2007 and beyond, I will only buy no-load index funds
Read each resolution in detail HERE.