Uncertainty

Nothing unnerves investors and markets more than uncertainty.  We have seen its effect on individual stocks and markets many times over the years.  War, financial crises, natural disasters, terrorist attacks and threats, and political crises, have roiled markets.  The scenario is always the same, only the catalyst changes.  Each time, we hear, “this is different; we have never been through anything like this before”.

Yes, in every challenging situation there has been or is a real threat to the economy or world order.  However, from an investment standpoint each market downturn has been an opportunity for those who take a longer view.

The well-managed companies providing the necessary products and services have been able to adapt to differing situations, though the path through the crises has not always been easy to navigate.

It is never easy for investors to keep emotions in check when markets are unstable, headlines reflect crises and news commentators are highlighting everything negative.

This is clearly an uncertain time, and the stock market is reflecting that uncertainty.  I remain confident that the laws of economics and political structure will prevail, with stability returning to markets and the economy.  The question is when, but I don’t have the answer.  Patience and discipline are required.

As always, I welcome your comments or questions.

Best regards,

Bill