"One of the funny things about the stock market is that one man buys, another sells, and they both think they are astute."
- William Feather
Investors who are truly long-term investors do not need to be overly concerned about the daily whims of the financial markets. Long-term investors measure their investment time-frames in years or decades, not days, weeks or months. But since markets are so volatile in the short-run and since it's estimated that more than half of trading in the stock market is "High-frequency trading" by institutions whose time-frames are measured in minutes or hours, it can be a struggle for the truly long-term investor to stick to an investment plan.
"A man who both spends and saves money is the happiest man, because he has both enjoyments."
- Samuel Johnson
It is nearly impossible for individuals and families who intend to be responsible with their money to achieve financial success if they are not regularly doing an accurate inventory of their financial state. The dieter regularly looks at how much she weighs and how much she's eating every day, the business owner routinely analyzes her inventory and daily spending, the athlete, her daily physical performance, the composition of her diet and the amount of rest she's getting. To achieve meaningful goals in managing money requires the same kind of focus and awareness.
David A. Pace, CFA
Note: These comments and articles are for informational purposes only. Nothing in these articles are meant to provide specific investment advice and are not a substitute for professional advice from a qualified adviser. Since every investor's investment and personal circumstances are unique, he or she should always enlist the help of a competent and trustworthy professional in addressing their financial needs.