A Glimpse Is Not Enough
John Templeton said that “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” Simply said but clearly misunderstood by many investors. Mr. Templeton also said that the most expensive four words in the English language are “This time it’s different.” It seems that investors never learn and are constantly asking questions like, “is now a good time to invest.” The time is always great for investors when there is market skepticism as in the current market. Despite good news the markets have been reacting negatively mainly because this good news could mean higher inflation which might lead to more Fed tightening which is interpreted as bad news for the economy. Now is a great time to invest so do not waste any more time on the sidelines.
First of all, trying to decide on when to invest in the stock market based on information gathered over a brief time period is likely to result in a bad decision. Investors need to take more than a glimpse at a small sample of data but instead need to do their research and keep their emotions in check. Many investors pulled out of the market during the COVID-19 panic of 2020 but rather than seeing this as an opportunity too many investors sold most of their stock holdings based on fear alone despite history repeatedly showing that there was a new buying opportunity being created. By the end of March of 2020, the S&P 500 had fallen drastically, in fact, on March 23 of that year, the S&P 500 had lost about 30 percent of its value. However, by the end of the year, the Market had risen by over 60 percent from its March low leaving many investors on the sidelines to lose out on an amazing opportunity.
The events that took place in March of 2020 have happened repeatedly throughout history. However, those famous four words, “This time it’s different,” seem to paralyze investors and prevent them from acting and therefore miss out on a great investment opportunity. There is no need for market timing or any special predictive powers to be involved in market rallies. Develop a plan and stick to it and stay in the market with those investment dollars that you have allocated to the stock market, it is that simple. Whether it was the decline we saw in 2020, 2008 or 2000, nothing is or will be different. After big declines, there will big opportunities.
At Investoristics, we constantly find opportunities and if you are looking for bigger and better chances at higher returns then look no further than our portfolio management newsletter. Our portfolio management approach provides investors with an opportunity to build portfolios that provide significantly higher returns than the market while taking much less risk. Make no mistake about it, now is a great time to invest and even a better time to subscribe to our newsletter. Get our no-nonsense guidance with your subscription today by contacting us at your earliest convenience.
