Bet on your gut, but be safe

96% of actively managed mutual funds don’t beat the market. If they can’t do it, with all their seasoned analysts, I’m not going to either. The clear path is investing in low cost index funds—which is why Warren Buffet will leave his wife in index funds.

I’ve been working to update my asset allocation with this in mind, but just can’t let go of one investment. I’ve held it for several years, been through wild ups and downs, and my gut tells me I’m right.

When you decide to go with your gut, you need to set ground rules so your emotions don’t get the best of you. I have a firm allocation that I’m prepared to lose and a strategy to sell of profits along the way, should it continue to trade wildly.

Good sense tells me to sell it, but I’m going bet on my gut… as safely as possible.

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