Investing used to be about having useful information and acting on it. Now information is abundant and delivery is measured by the millisecond. Investing is now about temperament, self-awareness and discipline; things that cannot be bought. How else would you be able to stay invested with “high” valuations in a long bull market?
“Two people with opposing views on a topic can see the same evidence, and still come away both validated by it.”
Equity Valuations anyone? Politics?
“For most of human history, people experienced very little information during their lifetimes. Decisions tended to be survival based. Now, we are constantly receiving new information and have to make numerous complex choices each day. To stave off overwhelm, we have a natural tendency to take shortcuts.”
Survival to the average investor means preservation of capital. This is why selling at the bottom occurs; it feels better to not think about the stock anymore.
“I’m convinced that having a long-term mindset and being more patient than other investors is one of the last true edges remaining in the markets.”
Bailing on a time-tested strategy may be the precise moment when it reinvigorates. Then again, markets can stay irrational longer than most can stay solvent, so multiple strategies and asset classes held for the long-term may be the ultimate remedy.
Barriers to Entry in the Markets (AWOCS)
” …aggregate earnings for the first quarter are on track to grow 13.6% from the year-earlier period, according to FactSet, the highest growth since the third quarter of 2011.”
Probably just share repos, right?
“Share repurchases among S&P 500 companies are tracking 24% lower than a year ago”