Dilok Klaisataporn
Summary
- All major market indices are suffering high volatility lately due to macroeconomic uncertainties such as inflation.
- During times like this, it is especially important to go back to the basics of sound investing.
- Focus on things within your control. Do not pick good stocks. Pick good businesses.
- Ignore things that are out of your control (or anyone else’s) such as exchange rates or inflation data.
- The fact that Buffett keeps adding to his already-enormous Apple position is a timely illustration of such timeless wisdom.
- Looking for a helping hand in the market? Members of Envision Early Retirement get exclusive ideas and guidance to navigate any climate. Learn More »
Thesis
The stock market (bond market too) is going through extreme volatility lately due to a range of macroscopic risks, ranging from red-hot inflation to the Russian/Ukraine situation. As I am typing these lines, August CPI data just came out and turned out to be higher than anticipated. The YoY rise reached 8.3% compared to the anticipated 8.1%. The stock market responded with a roughly 5% decline for the NASDAQ 100 index and 4% decline for the S&P 500 index.
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