I haven’t written in a while, sorry about that. For all of you that bought meme stocks, sorry for your losses. For those that have lost 30% or more this year, sorry about that too.
Ok, lesson today: For the big picture stuff, nobody fu***** knows anything. Nobody knows if we are going to get a second quarter of GDP loss or when the next recession will happen. Nobody knows if the market is going up or down tomorrow, next week, next month, or next year. Nobody knows.
But everyone is panicked and wants to know. So you listen to the know nothings on the business channel disagreeing with each other about the big picture stuff… economy or market direction. You may choose to believe one person today and another person tomorrow. So you make changes, you make moves.
Sell today and your biggest risk is that the market will bolt up tomorrow. Buy today and your biggest risk is that it will go down tomorrow. It could honestly do either. Short term activity will not make you money. Buying a small number of great companies will make you money… in the longer term. Maybe a couple years or perhaps five years or more, but long term great stocks go up.
So buy great companies today, dump bad companies today, or do nothing depending on what you hold and what you want. Don’t worry about market direction because in the long run it’s up. Don’t listen or read the financial news for help, it’s just not there.
The clues you need are in the financials for companies. The facts you need are right there. More later or make sure to read Investing 101. See link above.
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