The Single Most Important Investing Lesson
I don’t know what to write about today.
Sounds ridiculous, but it’s true.
I’m a professional writer, market strategist, and author. I literally make my living sharing information about the markets and global economy… and I honestly can’t come up with anything worth saying today.
What’s even more bizarre is that I feel this way despite the fact that there is a global coronavirus outbreak, an impeachment trial in the Senate, AND we’re in the middle of earnings season for stocks.
Am I losing my mind?
No. I’m simply being objective about what’s happening in the markets today.
While the coronavirus, impeachment, and earnings season are important issues for many people… the market doesn’t really care about any of them. If it did, it wouldn’t have fallen so little.
Take a look at the chart below to see what I mean. The stock market is down less than 3% from its all-time highs. And this is after rallying over 15% non-stop in the previous three months.
If the coronavirus situation, impeachment trial, or earnings were even close to becoming major issues, stocks should have absolutely COLLAPSED. Instead, they’ve had a relatively controlled decline and bounced at the first sign of support.
And so I’m bored. Not because I don’t care about global pandemics, political scandals, or corporate results… but because the market is TELLING me I should be bored, and not in hysterics.
You should be too, if you want to make money.
The single most important lesson in investing – the one that will help you make a fortune while others get whipsawed this way and that – is the following:
What YOU think is irrelevant. What the MARKET thinks is what matters.
What the market tells me today is that coronavirus, impeachment, and earnings aren’t big issues right now. That tells me I’m right to be bored and simply “watch and wait.”
Editor, Money & Crisis