NEW YORK (FMD Capital Management) -- As an investment adviser I talk with clients and investors all day long. Some know exactly where they are going and how to get there. Others are very confused about the direction of their investment accounts and don't have a plan to overcome their fears or indecision. I call this latter group "frozen investors" because they don't have a clear-cut idea about how they are going to accomplish their goals.
There are a variety of reasons why people may have frozen themselves:
- History of being burned by an adviser, newsletter or friendly "stock tip" in the market.
- Having read every opinion or strategy in the financial media, they are experiencing "paralysis by analysis."
- Have been working on their careers or family and not focused on their investment portfolio.
- Have missed the rally in stocks and now believe the market is ripe for another 2008-style crash.
- Have been conditioned by the media that the only possible direction for interest rates to go is straight up. Therefore, they are terrified of bonds.
- They got over-invested in gold or silver and have watched those values plummet for nearly two years.
If any of these sound like you and you find yourself adrift in a sea of self-doubt, I am about to throw you a lifeline. However, it is going to require a shift in your mindset to overcome your fears or preconceived notions.
The first step is realizing that you don't have a plan for your portfolio and that you need help getting back on the right track. It's uncomfortable to be in a place where you don't have a game plan for success. However, it is very easy to understand that you can't continue down the same path and expect a different result. Even indecision is still a decision to do nothing at the end of the day.