The Temptation to Change Lanes

by Jeffery A. Keill, CFP, CIM, FMA, FCSI, CEA

On the highway, it’s tempting to switch lanes when you see another lane moving faster. Similarly, in the world of investing, it’s easy to be lured by the promise of higher returns in different investment vehicles. Whether it’s the latest tech stock, a hot new cryptocurrency, or a promising startup, the allure of quick gains can be hard to resist. The mirage of a “sure thing” is enticing.

Frequent lane changes on the highway can lead to accidents, just as constantly shifting investment strategies can result in financial losses. Each time you change lanes, you expose yourself to new risks and uncertainties. In investing, this could mean higher transaction costs, tax implications, and the potential for making poorly timed decisions based on recency bias and other emotional triggers.

The Importance of a Steady Approach

Experienced drivers know that sometimes the best strategy is to stay in your own lane and maintain a steady speed. The same principle applies to investing. A well-thought-out, long-term investment strategy can often yield better results than constantly chasing the next big thing. Diversification, regular contributions, and a focus on fundamental analysis can help investors navigate the market’s ups and downs as well as avoid bad investment behaviours.

Knowing When To Change Lanes

Of course, there are times when changing lanes is necessary. If you see an obstacle ahead or if your current lane is consistently slower, it might be wise to switch. In investing, this means staying informed and being willing to adjust your strategy based on new information or changes in your financial goals. The key is to make these changes thoughtfully and deliberately, rather than reacting impulsively to market noise.

Conclusion

Chasing investment returns is much like changing lanes on the highway. While the promise of a faster lane can be enticing, it’s important to weigh the risks and benefits carefully. By maintaining a steady approach and making informed decisions, you can navigate the road to financial success with confidence.

Have you ever found yourself tempted to switch lanes in your investment strategy? You might want to speak with our team before doing so.

Last edit August 13, 2025