Yesterday grabbed the market’s attention. That downward tumble will likely continue today. For the long term investor, here’s what StockJaw is doing.
Mantain your long term perspective. Market disruption is one reason we form plans before hand. Rely on your plan to do the directing now.
Our discipline and research are paying off right now. Knowing precisely why you own particular stock positions will prove reassuring when times get rough.
Owning shares in sector and market leading companies always puts shareholders in the best position to perform well in difficult conditions, or to at least out last them through strength and superior execution. Good companies will almost always emerge in the best shape following hard sell-offs.
Headlines are tooled to yank your head around. Facts come a distant second. Consider leads and headlines as a starting point, rather than an accurate, applicable conclusion. Headlines are first and foremost carnival barking.
In times of trouble we might remember basics. Basics are the rules we want to obey. All who do are paid or saved. Examples include but are not limited to: suitability, risk tolerance, diversification, allocation, always some cash, etc. What else?
Let’s ask Peter Lynch for a comment on equity investing foundations. “Only invest in equities with money you won’t need for the next 10 years.”
Remembering fundamental guidelines in times of turmoil creates a lasting impression. No doubt. As we at StockJaw continue to grow and learn, we look increasingly to fundamentals.
The days of savage volatility and total disruption are why investors are paid. No? Were investing risk free everyone would do it. The looming fear of loss is what thins the ranks. The weak or scared hit the doors, leaving only the hard-core to take losses or mak money.
Equity investing is hard. It’s like lifting weights. You’re paid for doing the hard repetitions, not the first and easy ones. Those are only there to get you to rep 12 or 15. The final 3 are the money reps.
Images sourced from Pixabay.