Market Update
Introduction In my last publication, I said I was amazed at the resiliency the market had shown through the summer. We saw an all-time V-shaped rally off the April lows, and the market has just continued to climb higher. As we embark on autumn, this market has reminded me of a very important lesson that investors should pay close attention to: trades often last much longer than anyone expects. This is true on both sides. In other words, just when it seems stocks can’t go any higher, they do—and just when it seems they can’t go any lower, they do. Peter Lynch expertly identified this concept in One Up on Wall Street , pointing out that investors often sell their winning stocks too soon and hold their losing stocks too long. In recent publications, I’ve characterized this market as resilient. We’ve now moved beyond resiliency—we are in the fear-of-missing-out (FOMO) stage. This phase of a bull market is exciting, but it can also be dangerous. If you’ve been a long-term investor, or ...