The stock market always has headwinds. One could easily equate headwinds with what many call the market’s ‘wall of worry.’ There are no shortage of these today. While we are no longer in the teeth of a global financial crisis there are plenty of worries, both long and short run, that are worthy of note. The question is how much attention you should pay to them? Ultimately these worries get reflected in securities prices. A systematic approach to the markets allows investors to let the market ultimately filter these worries and let price speak for itself. Investors who get caught up in the ever-changing menu of market worries, and news, will ultimately miss out on potential investment opportunities. In today’s bonus screencast we discuss the market’s headwinds and the need to tune them out.
Items mentioned in the above screencast:
Doug Kass’ five headwinds for the market. (TheStreet)
More headwinds from an esteemed group of bloggers. (The Reformed Broker)
How high is the market’s ‘wall of worry‘? (Pragmatic Capitalism)
You need a system. (A Dash of Insight)
The market can stay under/overvalued for long periods of time. (Crossing Wall Street)
“The only antidote I know of to emotional paralysis is commitment to a systematic investment approach.” (Systematic Relative Strength)