Early in my career, I heard a quote from someone pretty smart, I think it was Warren Buffett but not sure, and I quote; “Mr. Market is always ready to buy whatever you want to sell and sell what ever you want to buy”. Doesn’t matter which way you want to go, and it doesn’t matter whether the trade is a winning or losing trade for you, he will gladly do either transaction. The trick is making sure the investor gets out of the way and lets the market do its job.
Here are several things to think about:
- Global economic data is at or near multi-year highs.
- Earnings season wraps up with record results. More companies now have a good idea of what to expect.
- Stimulus meets more stimulus which then meets pent-up demand that could all equal inflation.
- The stock market is in the throes of a reset based on inflation and interest concerns.
It is extremely difficult to watch “the market” when it’s heading down. But equity markets have long-term averages and markets tend to return to the mean over time. And, unfortunately, the public buys most at the top and least at the bottom. So, successful long-term investors generally follow a buy-and-hold strategy with minor adjustments along the way. They may follow the news of the day but realize that, over the long-haul, equities have provided a premium return that far exceeds inflation.
I’ve said this so many times in the last month or so that I sound like a broken record. But we’re all going to become permanently disabled and the only thing that’s going to stop that is a premature death. So, for the last couple of weeks or so, I’ve come across short articles that deal with the long-term care issue that many of us may face. I don’t know if any of us are currently going through this issue but maybe there is someone you know that is. I hope the article helps.
I don’t want to speak out of turn, but it does seem like spring is in the air. Hopefully, we can all get back to some semblance of normalcy. So, should you have any questions or wish to speak and/or meet with me, please call or email so we can put something on the calendar.
Remember, the only choice is optimism, the pessimists never get it right.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.