Why Patience Matters Now More Than Ever

Investors who may be seething that they missed out on the recent market rally from March lows need not be dismayed. This rally appears, to me, to be based purely on overly bullish sentiment. I don’t believe the market rally reflects the true problems we are seeing proliferate structurally in the economy today.

I am certainly in the camp of those who believe another letdown in the markets is likely. Thus, those who exhibit greater patience and poise today, I argue, will outperform those who let a “fear of missing out” drive their investing decisions. Patience really is a virtue right now.

Despite how appealing or tempting chasing the market may seem, sticking with one’s financial plan and staying conservative with one’s investment choices is more important than ever. This is particularly true when news and sentiment are driving stock prices more than fundamentals.

That being said, there certainly are pockets of value in this market. Investors ought to always be on the lookout for great opportunities.

My advice is to continue to do your homework, read Baystreet.ca and focus on fundamentals when making investment decisions. With valuation multiples based on some measures now at or near all-time highs, I think this recent market rally could be a devastating head fake for investors unprepared for further turmoil.

Invest wisely, my friends.