If you are an investor, it is hard for you to ignore the broad-based stock rally globally this year. And if you are a rational investor, it is even harder for you to decide how to invest now.

How can you find the hidden gems in the current investment environments?

When you observe the investors around you, you will see two group of people.

  • One group who consider that the market too high and you have to get out of it before it crashes
  • The other group who believe the market will continue to go higher and you will miss a lifetime opportunity if you don’t invest

The interesting thing is that people often say that nobody can predict the market, but at the same time, they believe that they can predict what is coming.

Most people’s investment mindset can be summarised by the chart below.

Typical DIY Investor Behavior