Would be investors make several common mistakes when planning their investments:
- Investors and most fund commentators think too short term. Success is a result of long term thinking eg a minimum of 5 years and ideally much longer than that. Mathematically, averages need time to become averages.
- Investors need to understand the ebbs and flows of whatever they invest in. Various assets..bonds, equities, property, commodities all react in different ways to each other. Financial advisers now combine these assets to reflect the mood for risk of their investors.