When is the Hardest Time to Invest?


As the song from “Annie” says, tomorrow is only a day away. In the invest world, tomorrow is always a day away. It is so tempting to wait for just one more data point or event. Should I wait until after the election, which is coming in just a few days? Then, should I wait for clarity on the fiscal cliff? And so it goes. While both of these events could have long-term implications, they are near-term events. Investors can’t hope to fully assess the implications of changing environments.

That’s a job for management. Look for well-positioned companies with good track records and then leave the rest to the management. They are rewarded for intelligent anticipation and effective reaction when anticipation falls short. Don’t dither. If you have chosen wisely, you are likely to be rewarded too.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA