I am finding the markets intolerably boring. Each day it creeps up a little more and the long only crowd reinforce their one dimensional take that markets always go up.They are correct the markets have an upward bias at least over the very long term.
Yesterday I found myself having an interesting conversation with my brother in law about my mother’s super fund allocations.
She has a very defensive portfolio and a cash deposit representing less than 5% of her portfolio has matured and her advisor wants to put it to work in some growth equity stocks. While I am ok with the suggestion I initially told him to hold off because I am uncomfortable allocating to a market at new highs. While this seemed sensible to me and to the advisor. When discussing it with Dani we quickly realised the mistake in our approach. We were debating the economic landscape looking at various phasing in allocation methodologies all for about a 3% allocation.
It then dawned on the both of us the very reason we chose a good financial advisor was because we wanted to strip our emotional biases out of the equation.
Just found this to be a very interesting take on the human need to control everything even the unknown.