The Big Picture

Jan 2015 //
Risk vs. Volitility
Economics
Optimism/Pessimism

As with oil, prices in the markets for all other commodities, products, services and investments are prone to over-react in the short term, as it takes a while for the necessary changes to occur.  Rather than becoming frightened by very low prices or over-exuberant due to very high prices, successful investors concentrate on powerful longer-term trends and take advantage of short-term price volatility.  After all, it’s only in seemingly-scary times that other investors will sell us their investments at ridiculously low prices, and it’s only in overly-optimistic times that they’ll buy our investments at very high prices.