Why does Wall Street love to create new financial products and engage in constant deal making? Because that’s the path to riches we are told. Some might call it capitalism. But, investors seem to have adopted the same sense of hyperactivity and the perceived need for something new even if the old is good, just a little out of favor at the moment.
Think about what’s happening right now in the financial markets. Seemingly overnight the stock market is out of favor, retreats by 7%, and the selling continues. Does that mean that you should sell too? Usually not.
Maybe it’s time to think of your investments like Grace Braeger thinks of her ’57 Chevy. Buy quality, not a gimmick. Conduct preventive maintenance from time-to-time. And, stick with it for the long-term.
