Many investors lament the downs of the market. They feel that the randomness is cause for complaint and pain.
Everyone wants to know now what the future holds. What will happen? What is the best investment when the predictions come true? How can I avoid any losses?
After all, Warren Buffet’s number one rule is ‘never lose money’ and rule number two is ‘see rule number one’. To expand on this Mr. Buffet would not sell during downturns because that would mean losing money.
How can I do this if I don’t know the future? The Wall Street bullies are counting on investors desire to ‘beat the market’ and avoid all losses.
Many of these experts try to convince investors that they can ‘beat the market’. That they will guide them to success without the risk of loss.
In reality, the unpredictable ups and downs of the market are part and parcel of its superior long-term rate of return. Volatility is the only reason the market offers a risk premium.
Celebrate the uncertainty. It contains the seeds of growth and wealth creation.
To reach your long term goals you must own equities….globally diversify….rebalance.