Ignore the noise & be patient

As an investor, do you find yourself “jumping at shadows” with the smallest hint of (real or perceived) bad news?

Are you truly as much of a longer term investor, which you say you are? I implore my clients to really think about this question. If not, it’s best that you cut yourself some slack & confusion , by admitting that you are a speculator.

Major equity markets have staged a wonderful rally with most of them re-visiting their levels of last August or October. If you focused on hunting for bargains and overreactions, you would have used the months of November and December to add to your portfolio.

Some “shadow jumpers”, “Trump deflectors” and “trade war worriers” may have riddled themselves with worry or worse yet, panic, which may have resulted in a poorly thought out decision to sell your securities during this time. It takes time for investments to mature.

Once the analysis and thesis is developed, formed and capital deployed, it doesn’t mean that the “payoff” occurs within the time it takes to run a horse race.

And through the period of the thesis being proved and confirmed, there will be volatility and pricing hijinks. Interestingly, the price action of the indices below are suggesting new long term trends are being confirmed.

 

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