I probably should be commenting about the selloff in the stock market, the selloff in gold, and the selloff in oil.
But by commenting on it would I be drawing attention to it, and would that imply that I think something is out of the ordinary?
On the contrary, a stock market that doesn’t have periodic retreats would be out of the ordinary. But we know that won’t ever happen because in the short run, the stock market is driven solely by the emotions of investors, and has nothing to do with underlying fundamental factors of companies and economies.
I would rather draw your attention to a thoughtful article written by Ron Lieber in today’s New York Times.
In light of the recent Facebook IPO, he talks about the near impossible task of picking winning stocks in your portfolio over the long run; suggesting a much better alternative instead (I’ll let you guess what that is).
Hope you enjoy, and happy Saturday.