{"id":22867,"date":"2008-10-27T14:32:00","date_gmt":"2008-10-27T14:32:00","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=447"},"modified":"2008-10-27T14:32:00","modified_gmt":"2008-10-27T14:32:00","slug":"mentalidad-interruptor","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/mentalidad-interruptor\/","title":{"rendered":"Switch Mentality."},"content":{"rendered":"
There is a lot of talk about whether or not it is time to abandon liquidity and start investing in the stock market, although for many, it was liquidity that abandoned them some time ago. It is true that today many companies are already trading at a good price or even at a low price. ridiculous prices<\/span> as my friend Pepe (a great manager if ever there was one) told me a few days ago. Buffet and other greats already proclaim to the four winds<\/a> their greed to buy good companies. There are also voices arguing over whether the famous claudication<\/span> has already taken place or not.<\/div>\n
\"\"<\/a>Many have traditionally thought, and even more do so in times of crash, about entering or exiting equity markets on the basis of the Switch Mentality<\/span>. We have given it this name because it only contemplates two radically different positions: On and Off<\/span>. In other words, we are up to their necks in it<\/span> o n<\/span>we keep you in liquidity<\/span>. However, we must bear in mind that, even at these two extremes, there are those who remain liquid with small percentages in stocks that were left up there, such as \"\"<\/a>a mountaineering anchor that was put in place with the intention of making progress but is waiting alone for the market to one day approach it and make it useful again as an investment. And at the other extreme, there are also those who are not only up to their necks in the stock market, but also owe mortgages or even loans they took out to take advantage of the bargains<\/span> with PER's as low as 25 or 50.<\/p>\n

Most of them, however, have a Switch Mentality that only contemplates the simplistic patrimonial strategy of in or out of the stock market<\/span>. As we explained in Circumstances vs Return\/Risk<\/a>, Our wealth is much more than the money in the bank. Moreover, within what is cash, we must be clear about how much of it we can risk in the stock market, and be aware that this money may not only not generate income for us, but may also be lost to a large extent. All this, within the framework of a Vital Balance <\/a>which is the roadmap of our life and heritage. For all these reasons, the Switch Mentality <\/span>is not only simplistic, but also extremely dangerous, as it only has a chance of success if we can guess the exact moment of the market floor.<\/span> And even then, depression can condemn our longed-for liquidity to a despairing market. flat<\/span> for many years. Most forget that, even in a non-depressive era, the Dow Jones barely rose by 10% between 1965 and 1983.<\/p>\n

\"\"<\/a>We must therefore be aware of the need to forget simplistic strategies and of the need for a moreaf\u00e9 for all<\/span>. Our heritage is complex and multifaceted. And our circumstances are even more so, and very changeable over time. Therefore, our stock market investment strategy must also be complex and multifaceted.<\/p>\n

\"\"<\/a>When we think of the timing<\/span> When it comes to investing the part of our assets allocated to equities, we must also be clear about the extent to which we are doing so. We must be aware that investing our entire stock market buying power in a few weeks is a gamble. Without the capacity to react to a probable error, either because we are wrong at the time or in the specific assets we are buying. Even if we get the tempo<\/span> We may need this room for manoeuvre due to a sudden change of scenery or a substantial change in our assets, among many other possible reasons.<\/p>\n

I know that many of you will say that with very small assets, the amount to be invested in equities allows little room for manoeuvre. And that is reasonably true, even if, depending on personal circumstances, the percentage of total assets that are susceptible to risk is higher. But for the middle and higher heritage, the <\/span>switch mentality<\/span> is one of the most serious mistakes that can be made, as it has only one and only one chance of success.<\/span> as mentioned above.<\/p>\n

Obviously this mentality must be incompatible with a long-term investment that seeks value in our purchases. But it is also reckless to rush in and out of the market even for investors who rely on technical analysis, as they still have only one chance of success even if some figures are highly reliable. Mistakes and\/or technical exceptions, with this mentality, can have even more serious consequences than for the investor. value<\/span>.<\/p>\n

\u00abIf you can't do the time, don't do the crime.\u00bb<\/p>\n

Investor in Derivatives (1978-2008)<\/span><\/a><\/p><\/blockquote>\n<\/div>","protected":false},"excerpt":{"rendered":"

Se habla mucho acerca de si es ya momento o no para abandonar la liquidez y comenzar a invertir en bolsa, aunque a muchos, fue la liquidez la que los abandon\u00f3 a ellos hace tiempo. Es cierto que hoy ya se ven muchas empresas a buen precio o incluso a precios rid\u00edculos como me dijo […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-22867","post","type-post","status-publish","format-standard","hentry","category-sin-categorizar"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/22867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=22867"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/22867\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=22867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=22867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=22867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}