Good Morning:

At least that is the time I began writing. The following are my thoughts on today’s stock market.

I woke up to day with a notice on my phone concerning a down market. It was around 2%. That is a very normal correction number.

I turned on the television to hear what the “circus barkers” had to say. And guess what I heard? The stock market tumbles or plunges. The stock has declined the worst since 2007 or 8. Very emotional rhetoric. I believe you are just witnessing another emotional reaction to current events that have little to do with a company’s earnings and growth prospects.  The stock market goes up and down as it moves in a general upward trend. 

We would be far better off if we did not make investing decisions based on emotion.

There are basically two typed of people who invest in the stock market.

  1. Investors
  2. Traders

Investors are likened to Warren Buffet. He stays the course. He is famous for saying “investing should be the most boring thing you do.”

Traders make their living investing for very short periods of time (hours) trying to time markets and particular stock. I am not discussing traders in this post.

For the most part,  people who read this post are investors. Warren Buffett is an investor.

Very boring.

The Portfolio Managers we employee to create and monitor portfolios are boring. They are very experienced with the credential CFA (Certified Financial Analyst). They are educated in economics, both national and international.  They design portfolios that have inherent risk and return characteristics. They monitor those portfolios to maintain the risk and return characteristics. They are educated in 18 different areas affecting the selections of securities.

They don’t panic and neither should you.

If you would like to talk with me please call me with your thoughts or questions.

Richard, 702-362-3123. or