Wednesday, September 2, 2015

Is It Different This Time?


In the world of financial markets, we are always asking ourselves the big question?

and the answer is always YES (and NO).

Of course it is different because it is usually different factors driving uncertainty and in financial markets, we very much do not like uncertainty.

However, there are also plenty of similarities if you look from a grander perspective and the similarity is the emotional response to uncertainty that remains the same: Fear represents buying opportunity.

CNN Money Fear And Greed Index:





Higher levels of Fear = higher levels of Volatility


And they all line up with buying opportunities.

If you look closely, there has been 1 good buying opportunity each year for the last 4 years (2 in 2014).

This is what we mean by patience, flexibility and discipline for investing. It is what differentiates good portfolio management from mediocre portfolio management.

That is the difference.

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