This post from Barry Ritholtz (The Big Picture) was too awesome not to share. He talks about why doing nothing is often the best way to invest:
Don’t do something, anything, just for the sake of it. If you are going to do something, you better have a damned good reason for it.
Doing something feels good. Doing something creates the illusion of control. Doing something responds to the angst we feel when we are unhappy with current circumstances.
Nothing is the enemy of the financial industry. Doing nothing does not generate any business. You cannot sell a front load mutual fund, an annuity, or any sort of private placement when people do nothing.
Nothing generates no fees, commissions, costs or taxes.
The investment industry hates nothing. Just about everything the financial sector does or says or markets or advertises is designed to get you to do something — anything!
When confronted with a problem, many people feel obligated to do something, anything — even the wrong thing.
“Well, at least you tried” they say, when what they really meant was “You did not think this through or fully consider the options and outcomes to your decision making. You failed.”
Nothing is underrated.
Sometimes, nothing is better than something.
What are you doing when you should be doing nothing?