Topic: How To Invest

What is Pat’s commentary for the week of May 18, 2021

Article Excerpt

Here’s the text of my latest letter to our Portfolio Management clients, sent in March: “As long-time readers know, I always have an idea about where the market is headed, and the path it might take to get there. To stay on top of this ever-changing idea, I look at what has gone on in the market during my career. Then I try to think of what might happen next that would be congruent with what we’ve seen so far. This is different from basing predictions on economic or corporate statistics or indicators. Instead, it’s like coming up with a set—a range—of plausible expectations. You start by considering what’s already going on in the market. Then you consider how people and groups might respond to current market developments. Anything can happen, of course. But people generally stay within the range of reactions you might expect from basic human nature and normal human emotions. Review & Question Lots of investors and advisors try to…