One of my favorite Warren Buffett quotes is, “Remember that the stock market is manic depressive.”
What he’s suggesting is that stock prices can sometimes swing wildly from day to day in response to even minor news. One moment stocks can celebrate comments from a Fed official, and hours later, they can vilify the most inane data points.
Buffett concludes it’s more important to keep an eye on your future and ignore short-term market movement.
You may have also heard of Sir John Templeton, the legendary mutual fund manager who pioneered international investing. He intentionally read The Wall Street Journal a few days late to avoid emotional decision-making based on a headline.
So take a lesson from two of the best. Avoid riding Wall Street’s daily roller-coaster so we can focus on what’s ahead.
PHOTO CREDIT: https://www.shutterstock.com/g/pandorastudio
Via SHUTTERSTOCK
DISCLOSURE
Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.
