Jan 2015
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.