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Embrace the Market Volatility

Mike Williams | 19th February 2020
Categories
Letter from America
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I can’t start without saying that the race for the Presidency has certainly started with a thud.

The Iowa outcome was laughable. 

And given the vitriol on the issues at hand over the last three years I’m not certain what to expect as this unfolds into the November election.

Angst & Chop

We need to train ourselves to expect periods of corrective action at times as the year proceeds.  

In fact, we need to embrace them as positives.

More of the Same

Now, in case that print (above) is too small, it reads: "US Futures point to cautious open as investors monitor coronavirus."

Aye, right! 

Let's Be Serious...

Of course a correction is coming…someday!

And hopefully that day is several long years away.

But history shows it is usually NOT when everybody expects it. 

Make no mistake:

  • The foggy future ahead will continue with this fear-laden reprise of, "Sure I feel great as long as the market does not go down for more than 6 hours in a row," and bouncing from one monster to the next addiction, and
  • There is currently no end in sight for the above.

Until Then Expect…

  • Bad feelings to mount even if we’re just three or four days into normal windows of media red ink about the markets, 
  • Significant fears to arise when we see two weeks or more of red ink (and we will, hopefully),  
  • The headlines to always be dark - painting even good news with the required and now perpetual, "but...." or "even as (insert something horrible)"
  • Wall Street to continue to feed you enormous numbers of ingenious sounding tools (i.e. products) to "escape" the risk in long-term investing, and 
  • Rocky periods will always be in the offing.

Embrace them all. Don't run from them. Know they are required in the long-term game.  

Alan Steel Asset Management
Alan Steel Asset Management Ltd is authorised & regulated by The Financial Conduct Authority (FCA No: 114423).
Registered in Scotland SC058014. Registered Office: Nobel House, Blackness Road, Linlithgow, West Lothian, EH49 7HU. Please note that the Financial Conduct Authority does not regulate some forms of tax advice.
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