Short-term Prices: More Opportunity than Meaning

Mar 2016 //
Cycles
Risk vs. Volitility

Especially over a period of several months or less, stock market moves simply don’t tell us much.  They can, however, provide us opportunities.  Indeed, I recently read an interesting comment about market cycles:  ‘Every past bear market is viewed by investors as an opportunity, yet every future bear market is viewed as a risk.’  I don’t know who wrote this, but I think the author hit the nail on the head.  With the benefit of hindsight, almost everyone realizes that great opportunities were created in the last bear market.