Just as the Covid crisis appeared to be ebbing away, financial journalism has found two new crises du jour, and they are getting a good hold of investors’ imaginations.
Inflation is out of control and an invasion of Ukraine is imminent. Or maybe it’s the other way round, or both are both.
It matters not whether they happen. It matters only that investors think they might.
If they do, they turn the noteworthy into panic and then into existential terror.
This is good news for us and bad news for them.
As their terror intensifies, they will sell really good businesses at discount prices. This is has started to happen, it’s why stock markets have fallen. This is really bad news because it turns short-term news that will pass into long-term financial destruction.
It’s manna from heaven for us because we can buy really good businesses at discount prices. In so doing, we increase your long-term returns thereby strengthening your long-term financial plan and creating more wealth for you.
Be grateful that these crises du jour keep coming around; your fellow investors are handing you money on a plate, accept it with gratitude.
All you have to do is remain patient and keep the faith with the very sensible plan and strategy that has served you so well so far. None of us are in this for 30 days, weeks or months, this is a 30-year gig at a minimum.
This exact same approach served you excellently during the Covid crash and crisis (CLICK HERE for more on that). It will do so again, you have my word.
As surely as Brexit, Trump and Covid have passed, this will too, and then we will be onto the next one.
Not quite enough panic has yet set in for us to act, but maybe we are not far off.
We will keep you posted.