Fear interferes with rational thoughts. Consequently, it has no place in the investing process. A year ago people were panicked and selling stocks, indiscriminately. Now the news is reporting a strong rally and some investors are fearful it will end and collapse again.
Consider a couple of points. Many good businesses, whose earnings held up, remain undervalued today. The valuation of the general market appears above average, but is calculated on very depressed earnings. Finally there are good companies selling at fair values and are poised to grow.
Today’s video looks at valuation from different perspectives.
Best when viewed in full youtube screen.
Disclosure: Author Manages Portfolios Long CERN, HCBK, PEP
Remember it is a market of stocks, not a stock market. Keep your emotions in check and your decisions based on specific analysis.