The problem with investing is that it is really quite simple but actually very difficult to implement (in terms of behaviour). Other than making an assessment of a company, versus the cost of taking a stake (its share price), there are only a handful of principles to keep in mind.

At times, we all enjoy a windfall. This could be an annual bonus, a promotion with a nice increase, a new job, we land a big client, a huge profit spike in our business or an inheritance.

These are tremendous opportunities to build metaphorical ships. While we may not be facing an impending invasion, we could have areas in our lives that are concerning us. It never hurts to have a “rainy day” fund.

So much of what we do everyday is trying to help our clients find the right ladder while avoiding the snakes in their paths. An older and wiser adviser shared this analogy with me when I first started out in the money management industry and after playing with my son, I have to admit that it rings true.

So, one could say that recent times have been a boon for stock-pickers …who can get it right, but longer-term, things even out, with different market and economic conditions driving different markets at different times.

The risk is that inflation goes higher which will means that bonds yields will also go up and you as a direct bond investor will be “locked-in” to your interest payment (your yield). In real terms then you might find yourself earning less than inflation and /or less than current interest rates. Your loss is the foregone opportunity costs of being able to have earned a higher rate and /or the fact that you might end up earning a negative real interest rate. This not necessary that terrible unless inflation soars.

The key lesson and core investing principle is not to time markets. Why? Firstly, they are mostly unpredictable and secondly recoveries happen fast; if you’re not invested, you forfeit big gains.