Paralysis of Analysis: When You Don’t Know What to Buy

You have cash in your account. You desperately want to buy SOMETHING.

But in today’s world unlimited choice through ETFs and free trades, the options are sort of akin to picking out toothpaste at Target.

There are more than 5,000 ETFs available and god knows how many strategies. Despite the fact that about 50% assets are in 20 of those ETFs.

I’ve got some money from the sale of a house and I’m trying to get it into the markets so it will actually earn something for me. I’ll write more about this when I actually make the investment.

I had all kind of plans. I was looking at screens and thinking investing in shit like Frontier Markets and Commodities.

Then I got obsessed with the idea of finding a low yield investment for my taxable account. But, of course, tailoring an investing based purely on a low yield so you don’t get taxed is as thin as basing it purely on a high yield.

Then it was global stock ETFs, because I’m also obsessed with global diversification.

Having ideas can be good in investing, but having 20 ideas is paralyzing.

It’s probably best to have a simple approach – you’ve got stocks and bonds, and you try to find the right mix.

But that’s just not my investing DNA. I always feel compelled to do something clever or different. Although it probably amounts to underperformance in the long run.

RIP to John Bogle, who just put half in stocks and half in bonds.