Market Mood Swings Shouldn’t Move You
The recent rally is precisely why we stay in the game, no matter the headlines
A month ago, headlines were harsh and the mood was grim. A few friends texted me wondering what they “should do” with their money given the “recession” that was coming. Inflation seemed sticky, rate cuts felt distant, and many braced for a rough stretch amid tariff noise. Recession warnings were everywhere. The market looked shaky, and investor sentiment followed suit.
Fast forward a few weeks, and suddenly, things don’t appear as dire.
This is the nature of human emotion and markets: They turn fast. What feels like a slow grind down can very quickly give way to a sharp recovery. If you let fear drive your decisions, you risk missing that bounce. As we’ve seen repeatedly, the market’s best days are often clustered with the worst.
If you try to time every twist and turn, you'll exhaust yourself and likely underperform. That’s why we stay the course and keep investing. It’s really that simple.
To this end, I wanted to share a few of my favorite stories tied explicitly to Charlie Munger and John Templeton.
The 100-Year perspective
Munger often talked about using a "100-year lens" to evaluate decisions. He urged investors to think about long-term consequences rather than immediate gratification, a principle he applies to investing and life. In this short-term, 5-second attention span world, that principle really shines.
A few days late
Maybe my favorite Templeton story is about his unusual habit of intentionally reading The Wall Street Journal a few days late. He believed that by avoiding the daily noise and emotional reactions of the market, he could focus on big trends and opportunities. I love this. He felt sound investing required independent thinking and discipline, not chasing the latest headlines or fads. Investors looking for wonderful companies don’t need to react to headlines. Focus on the businesses and allocate capital accordingly.
Keep investing for the long haul,
Matthew