Now that the first people are getting the vaccine, it feels like we are on the verge of a Grand Opening of our economy.
It is especially exciting to see the front line workers get vaccinated, as they have risked their lives every day to save others.
The stock market has been anticipating this moment for months, and in large part has rallied to new highs because of it.
Now, with the vaccine’s arrival, you can expect there might be some hiccups along the way as there is with any Grand Opening.
When negative news hits the air waves it can lead to fits and starts for the economy and market.
This kind of news can delay the anticipation of life getting back to “normal,” where a large majority of people dine out regularly, fly, cruise, lodge, and pack into theme parks, theatres, and large public venues.
This could rattle the nerves of many investors, which could filter through the markets and lead to continued volatility.
The short-term movement in the markets should not be of concern if you have a proper balance between “growth” and “safe” money.
Additionally, the long-term view for Quality companies will remain bright, which should continue to prove profitable for Quality companies.
Quality businesses take a long view and make pivots in their business in the short-term, which makes them great businesses to own throughout a market cycle.
Owning these Quality businesses can be the difference between staying invested in periods of volatility or jumping out of the market. In the case of the latter, this could result in wealth erosion and a forced reduction in lifestyle in the future.
Owning quality businesses can help you as an investor remain resolute in your long-term investing, so that you can stay the course throughout the ups and downs of a market cycle.
Joy to the world and peace on earth!
“We keep moving forward, opening new doors, and doing new things, because we’re curious and curiosity keeps leading us down new paths.”
– Walt Disney