Focus On The Bigger Picture
This week has
seen America through one of its most trying times. Even though the
attacks occurred in the Eastern part of the United States, very few Americans
have been left untouched by this great tragedy. My deepest sympathies go out to
all the people that have suffered from recent events and offer faith in God and
support in our country’s leadership for restoring America to its greatness.
Immediately ahead is the concern as to
the opening of the U.S. equities markets either Friday or Monday. Most
intermediate-term investors who follow this column and investment philosophy are
in cash or a cash equivalent at this time, and will not suffer or benefit from
the trading that is about to occur. Right now, it is extremely important to keep
a close eye on the trading action on at least a daily basis. As bad as things
may seem or get, they can turn on a dime. Eddie’s article on the
aftermath of historical crises (How
The Financial Markets Reacted To Past Shocks) is a perfect illustration
of how things can unfold when investors least expect it.
As we sit in a non-participating, cash
position, it is very important to focus on the bigger picture and what may or
may not be unfolding in the market. Please do not get caught up in the
short-term action surrounding recent events! In my experiences, I have
traded world events with the best of them and I strongly believe there is no
substitute in waiting for the longer-term trend to unfold rather than quick
profits.
Make the best of the recovery of
America and keep your capital out of harm’s way.
Until next time,
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