This week has seen wide swings in the stock market. There is a poor indicator….a bad earnings report….a country is highly debt leveraged….any negative news will suffice.
The news media is prone to use bold headlines….strong words to describe the latest “tumble”.
I recall clearly the primary investment course in the Michigan MBA school….and the course was “investing” not trading. My company for that courses was Sinclair Oil….a prominent oil producer….refiner….retailer at that time (1967).
The course required a case study of Sinclair Oil….the financials….the management….the market. I don’t remember my recommendation of Sinclair.
What I do remember is that investing requires a thorough analysis of the company (or mutual fund now) and investment decisions are based on the long-term strength of the company (Sinclair Oil in my case).
Investing is simply that….not trading. Investing for the most part has to ignore the day-to-day, week-to-week swings in the market or even more so how dramatic the news is that day.