It ain’t all that hard to predict a market meltdown after a sustained period of unsustainable growth. It was only a matter of time. The tricky question is not “if” the markets drop. It is a matter of certainty that they eventually will. The tricky question is “when” they will drop. And that, my friends, is completely unknowable. No person who has ever walked the face of this earth has been able to accurately predict the fickle moves of Mr. Market with any degree of reliability. So don’t try it. Just say no to market timing.
Will the markets bounce right back? Maybe. Will they get even cheaper? Could happen. When will they recover? Nobody knows. Will they recover? Without any doubt or hesitation, I say yes they will.
One thing is for sure, right now you can accumulate shares in wonderful businesses and you can do it for cheaper than it would have cost you last year. And that makes a world of sense if you are a long-term investor.
Here’s a final blast from the past:
“If you are a true investor you relish the opportunity to pick up shares in world-class companies at bargain prices. Every once in a while the stock market has a big sale. Speculators call these events crashes, corrections, or adjustments. Investors call them opportunities.”