Meaningful Returns

In central North Carolina there is a chance of scattered thunder storms almost every day during the summer. This is just part of living in central North Carolina. The forecasts will probably be off as to when and where those storms will actually occur, but no one is terribly surprised when they do.

The same is true in the stock market. Corrections occur regularly, and these corrections are just part of investing in the stock market. The forecasts will probably be off as to when and where the corrections will actually occur, but no one should be terribly surprised when they do.

And to go a step further, while severe thunderstorms can certainly cause significant damage at times, they also play a key role in the health of the local ecosystem. Without the storms and the rain they bring, everything would just die. And while corrections can cause significant damage at times, they also play a key role in our long-term investing strategy, because corrections allow the market to re-calibrate and for us to buy stocks on sale, as it were.

Fix the leaks in your roof, assess for damage following the storm, and go back to enjoying the summer when it’s over.