Monday, December 5, 2011
UP AND DOWN THE SAME STAIRCASE
9:27 PM | 
Posted by
pensionfinancialservices |
A few words about volatility, which, like the weather,
everyone in the market seems to talk about--but
who appear resigned to the fact that there's not much
they can do about it. Philip Roth probably put it as
well as anyone: "Fear tends to manifest more quickly
than greed, so volatile markets tends to be on the
downside. In up markets, volatility tends to gradually
decline." And the "fear" that Roth alluded to seems to
have become synonymous with the debt turmoil in
Europe, which has brought fear across the
ocean and onto The Street. So where does that leave
investors?
In this economy and political climate, most are in a watch-and-wait mode, which is par. But when you’re fearful and go with the crowd, you sometimes miss the positive signals. Take housing. Mortgage rates are incredibly low and houses have seldom been so affordable. Plus
consumer spending and industrial production are up.
"I will tell you how to become rich," Warren Buffett said.
"Close the doors. Be fearful when others are greedy. Be
greedy when others are fearful."
At Pension Parameters,where the doors are open (and phones are always answered), the watchword is steadiness, with calm, clearheaded analyses
of economic swings and activities. As such, this economic
climate doesn't appear particularly hospitable to greed or fear.
Gyrations do not shake us up at Pension Parameters; not when our clients continue to be sustained and profit by advice that is calm, measured
and prudent.
Labels:
volatility
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