Over the past 10-or-so months, many investors have sold the businesses they own for various reasons, including:
- Potential supply shock out of China
- Hospitals overrun due to covid
- Trump may get re-elected
- Biden may get elected
- There may be a stand-off after the election
- Interest rates may rise
- Interest rates may fall
- $A may rise
- $A may fall
- Market is too high
- VIX is going up
- Etc. Etc
If one looks hard enough there is ALWAYS a reason to be fearful when trying to predict the direction of the stockmarket.
We counsel our readers not to lose sleep, nor waste their precious time and money worrying about the unknowable aspects of the short-term future.
Even more importantly, we counsel our readers not to buy or sell any business based upon any of these forecasts.
It is the job of the investor to seek out a variety of businesses they would be happy owning for 10 – 20 years and trying not to focus on these unknowables. Of course, this is far easier said than done.
We came across an excellent article during the month titled Value Investing and Behavioural Finance, but Christopher H. Browne, to read the article, please google "Value investing and behavioural finance" Tweedy Browne, to find the pdf (12 pages).