Topic: How To Invest

What is Pat’s commentary for the week of February 7, 2017

Article Excerpt

Dear Inner Circle member, In our last Inner Circle, I wrote about the difficulty you face when you try to predict stock-market corrections (temporary setbacks in stock prices). The task relies on a lot of guesswork. On the whole, it does more harm than good to investor finances. Last week I focused on the drawbacks of the “too far, too fast” approach to predicting corrections. The other common correction-predicting method is distinct but related. It comes down to guessing when stock prices are “too expensive.” This too does more harm than good to investor finances. Let me start by repeating an adage that virtually any experienced, successful investor can confirm: the market never gets so high that it can’t go higher. (For that matter, it never gets so low than it can’t go lower.) It’s true that the market periodically rises to exaggerated, outrageous, even silly heights. But any connection or similarity between or among any two (or more) of these peaks is…

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