2016 is an election year with no incumbent running. That means all the candidates will go negative on the economy and its prospects. Their game plan will be to say, “Everything is rotten—but pick me as your next president! I will fix it, and all will be perfect—if you elect me as your next president.”
They say it ain’t over until the fat lady sings. I think I hear the U.S. stock market singing the following, “I get knocked down, but I get up again. You’re never going to keep me down. I sing the songs that remind me of the good times and I sing the songs that remind me of the better times.”
For the past six months, we’ve had just enough economic bad news to make some people sell and head for the exits. At the same time, we’ve had just enough good news for others to keep on keeping on.
Be still! The effectiveness of this simple but profound wisdom has proven valuable for thousands of years. Adherence to “Be still” has been profitable for successful long-term investors like Warren Buffett, yet it is very hard for many investors to follow, especially during market turbulence.