The Risks of DIY Investing

Heritage’s Chief Investment Officer, Bob Weisse, opined on Do-It-Yourself investing in an article published in US News recently. Here is an excerpt from the article:

“Many investors have a poor investment experience because they buy high and sell low,” Bob says.

He further adds that most people think they can control their emotions, but many were buying technology stocks in the late 1990s, selling stocks in 2008, 2011 or early 2016, or holding cash because they weren’t sure where the market was going.

“These timing mistakes can be devastating to a portfolio’s return,” he says.

Do-it yourself investors also need a solid asset allocation plan.

“You need to set a prudent asset allocation today, and then only change it to rebalance or potentially make smart adjustments based on market conditions,” Bob says. “Like the ‘discipline’ theme, if you have an asset class that’s underperforming for an extended period of time, selling it is probably not a good strategy.”

Read the full article here.