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TIME FOR A REALITY CHECK?

By March 28, 2017 No Comments

Volatility remains – scary to some and opportunity to others (the great Warren Buffett has been buying during this 2015 market volatility…Google it if you don’t believe me!). Volatility can be un-nerving but to those who can remain focused and disciplined, volatility becomes their friend.

The team at EdgePoint put out a great article a short time ago and I encourage you to read it here: Reality Check

Panic is not an investment strategy. Unless your goals or circumstances have recently changed, there is no need to change a thing. Trying to time the markets and wait till they ‘calm’ down is nearly impossible. It’s normal to worry when the markets fall but it’s also normal for the markets to go up and down.  Sometimes the swings are just bigger than we like.

Consider this – If  house prices fell 5% (yes, housing is a market and does correct too!) would you sell your home in the hopes of buying it back at a discount?

To quote my friend’s at EdgePoint – ‘Volatility is the friend of the investor who knows the value of a business and the enemy of the investor who doesn’t’.