When markets get scary and volatility gets crazy, you need to adapt your attitude.
An ancient Chinese curse goes something like, “may you live in interesting times.” Well we’ve been living through interesting markets. But they don’t have to be a curse if we have the right mind-set.
And that’s rule #5 for whitewater investing: enjoy the ride. We have to change our approach to the market if we want to profit from today’s turmoil. Some compare a bear market to a sale at an investment store. We can buy the same, name-brand merchandise for half the price we used to pay. And in many cases, those companies are just as profitable, if not more so now, than they were before the downturn. If we get energized by a sale at our favorite retailer, why not get excited about finding Wal-Mart in the bargain bin?
The ups and downs of the market don’t need to be frightening if we see them the right way. If we view investing as a journey and we learn to enjoy the ride, getting there can be half the fun.
Douglas R. Tengdin, CFA
Chief Investment Officer
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