The Volatile Mood of the Stock Market – Ignore It

Investors and stock market analysts often discuss the mood of the stock market. Should we care? Are we going to buy the stock of a company because other investors are happy about it? Will we sell a stock because a group soured on it? Some people do.

I find this behavior foolish. Consider this. A group of people tells you to leave your spouse. They have a bad feeling about them. I doubt that most of us would listen. We know a lot about our spouses. A few, however, would listen. They may have been waiting for anyone to confirm what they believed. But that would be a different topic.  

The point is, we should ignore the mood of the stock market. We should do our homework. We need to understand the company we invest in. Calculate what a company’s stock is worth. Then buy that stock below its value—far below its value if we can. We want the potential for a high return. Following the volatile mood of the market will not give us that.

Enjoy Your Day.