SMI regularly suggests that one’s investing decisions usually can be made with little regard for what’s going on in the investment markets. This seems counterintuitive. Let us once again make our case, then we’ll apply it to the question of deciding whether now is a “good” time to sell some of your stock holdings.
Where do investment decisions originate for many investors? The starting point is found in the impersonal “outside” world of current events, magazine articles, and “expert” recommendations. Their decisions are guided primarily by outside considerations. As they respond to the data thrown at them — sometimes buying, sometimes selling — their personal “inside” financial worlds take shape. Their thinking is “outside-in.” They need a continual stream of outside information to stimulate their thinking and provoke them to action. Decision-making would be impossible without it.