Recently I’ve had a few clients and blog readers express their optimism about the market given its recent positive performance. This is pretty common after a period of higher than normal returns and reminds me some of 2007. Back then we’d just come off a solid 4 1/2 year run of great stock returns (not to mention very strong real estate returns). Investors were excited and expectations were high.
Of course, most of you probably remember what happened..the Great Recession.
I’m certainly not forecasting a repeat of 2008, but it’s important not to get suckered into overconfidence when the market rallies. Further, it’s important to understand that even if you want to suddenly get more aggressive (though I would not suggest that), the best time is when the market is low.
Warren Buffet has a nice quote on when the best time to get in the market is…
“I’m selling when their yelling and buying when their crying”
- Warren Buffet
With all that lead in – enjoy today’s market update video:
Based on my research, the best way to enjoy long term success as an investor is to follow an emotion free system. It’s one of the reasons I share my Tactical Asset Allocation model on the blog. Rather than guessing, using sayings, or just flat out ignoring common sense; I prefer to follow a simple, proven system that keeps my decisions unbiased and emotion free.
Best,
Jason Wenk
Is this a good time to buy Perrigo, as it is at it’s lowest price in some time?
Don
Hi Don,
I can’t really leave direct suggestions about an individual company on my blog – but we can chat about this over the phone. Generally I prefer to stay away from individual stocks unless they are part of a well balanced, fully diversified portfolio. But I know your affinity for Perrigo, so we can take closer look.
Best,
Jason
Wow…GREAT blog Jason! I needed that reality check. …..whew…now I am stepping back and taking a deep breath. Love the Warren Buffet quote! Congrats on you speaking engagement. Awesome!
Thanks Linda – glad it helped!