The Tortoise and the Hare

Listening and the skill to comprehend is a fine art in the world of investment. The ability to contemplate and discern are essential tools, particularly when the information being heard presents a challenging viewpoint.

In our age of social media, hysteria and loud dialogues often overwhelm civil discourse about financial markets. The ear is filled with noise. Reducing the volume and the amount of nonsense is vital. Ploys are produced to fool the public. Separating people from their money via sophisticated fraud has a long and chronicled history.

Comprehension is required on behalf of the investor to differentiate between vapid noise and intelligent consultation. Are you objective and experienced enough to think, “I disagree with what I am being told and need to walk away.” Or to observe, “This advice may be unpalatable but prove to be worthwhile.”

Intelligent market insights can enter a vacuum when they are disregarded. Listening is an expertise which allows you to learn and create light where darkness resides. Successful Investment with financial planning provides a means to secure your family’s wealth and create a foundation for your loved ones in the years to come. However, while financial security is a clear objective it remains a distant goal for many people.

Trading discussions are plagued by nonsensical speeches posed by ‘the experts’. Regrettably, the speaker often knows what the audience wants to hear, and confirms counsel sought which leads ultimately to poor decisions by the manipulated.

Those who offer a different perspective, particularly by the odd person who tries to talk about investment and its tenets are frequently viewed as boring relics. Many people without experience want to discuss trading and not investing. The saga of the tortoise and the hare is not a mere childhood fable.

You have had success in your business endeavours, but can you make decisions without the help of professionals to help guide, protect and hopefully grow what you have earned? Does your financial adviser have the capability to listen to your needs and desires too? Or is there a shortage of time, and are you one of hundreds traversing inside a bank’s computer driven portfolio system? Is your fund manager content to give you ill-conceived mandates which have been signed off by well titled individuals who are able to lurk in the shadows without a care about the outcome of your investments?

Hyperbole from a variety of media sources has grown fast and dangerous. The desire to make riches generates a whirlwind of enticing schemes, and sometimes the outright practice of ‘pump and dump’ manipulations. Short a stock? Call the direction of the market in the next 3 to 6 months? Are you good enough, or more importantly lucky enough to make the right decisions? Quick money is attractive, and marketing teams are ready to profit from your desires. A host of companies are waiting for you, and their sales associates are ready to separate you from your hard-earned cash. There are teams of folks with questionable character only a click away and selling dreams which they know will be a disaster for the vulnerable.

For nearly every person boasting about profits from the latest asset mania there are numerous people who are suffering negative returns. The victims are left miserable and dumbfounded as they wonder why they couldn’t take advantage of the opportunities and the testimonials amplified on mobile applications.

The Abraaj Group in the UAE has taken a massive hit, and experienced international institutional investors are reeling as they sift through the ruins. Cryptocurrency is the latest trading craze, and have ‘only’ lost more than 60% of their value since last December’s surge. However, those in the digital asset midst who say, “Hold on for dear life”, can still be heard.

Does that mean the Emirates are a bad place to invest? Does it mean blockchain is inherently flawed? No, but they serve as evidence that patience, due diligence and experience are important stepping stones which help build strong financial foundations. Reminding all of us, investing requires the full scope of well-practised efforts and a disciplined strategy.