Keep your Focus.
Stocks are a long-term investment. Period. The longer you are invested, the higher the probability you make money. The shorter the holding period, the probability of losing money goes up. We don’t invest in stocks for the short term. We advise all our clients to have sufficient liquidity so they can ride through downturns like this one. So what the market does right now doesn’t matter. If one focuses on what’s happening right now, it unnecessarily places one’s attention on the wrong thing. If your goals are long-term, if your need for money is off in the future, then that should be your focus. And you should be happy about the present turmoil. It’s not only an opportunity to buy if you have the resources. The turmoil is also the process of fixing the problems that arose from the enormous liquidity boost from the Covid crisis. In our view, the news is good right now! It’s a good time to buy, interest rates are higher (which is good for bond and CD buyers), and we’re addressing our problems. Today’s mayhem sets the stage for the next rise in the stock market. When it starts, no-one can say. But each day that passes is a day closer to the resurgence of the bull market.
Long-term investors – stay focused on your personal goals and take advantage of the opportunities created by those whose focus are wrongly on what’s happening today.
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