Whilst we have experienced significant volatility in recent days, much of this due to Euro-zone issues and ongoing ‘trade-wars’, my commentary focuses on the key influences of the third quarter of 2018.
Of course, as I pointed out just a few month ago (following the market correction in January) volatility is not to be feared, it is in fact necessary.
Indeed short-term volatility is not only the price for, but it is also a requirement for long-term out-performance. Without it we should not expect a premium return for holding equities.
However, what is very important is the manner in which we react to volatility, with the recommended course of action being…no action!
As Warren Buffett said, “The hallmark of [a successful] investment process is benign neglect, bordering on sloth”.
This allows the market to take its course, as given time it will bounce back, and you still need to be in it to benefit from this.
Anyway, back to my commentary, please follow the link to access this to explore what has happened in the various markets over the third quarter of 2018.