Price and time are the two levers that investors use to capture value.
Price is weighed on two scales: cheap or expensive.
If you see the price as cheap, no matter how high, you will feel you are getting a good bargain and commit.
If you see the price as expensive, no matter how low, you will feel you are being fleeced and not commit.
That feeling has nothing to do with the price and everything to do with future value.
Value is a fleeting and subjective emotion, which is why the best investors build criteria for defining value that serve as guardrails to keep their emotions in check.
Time is weighed on two scales: long or short term.
If you are a long-term investor, time is in your favor, and timing the market feels like you are not committed to your strategy.
If you are a short-term investor, time is against you, and not timing the market feels like you are not committed to your strategy.
Timing is seen as a burden to the former and as wings to the latter.
Understanding your default feeling towards timing can help strengthen the criteria you use to set for value.
– Osasu Oviawe