Quote:
Originally Posted by espanol
Seeing a lot of economic factors cited here. Certainly one could derive a correlation between the state of the economy and stock valuations.
But we invest in stocks (companies), not GDP. The stock market is not the economy. One should focus on the future prospects of long-term corporate earnings to decide if today is a good day to invest. Trading on random events is the equivalent of gambling. Information can gamify investing.
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These are very wise words ^^^.
Investing is often confused with trading I think.
If you are focused on “investing” for the long term, it doesn’t really matter what todays price of a stock trades at. You focus on buying good companies, with long term growth, that trade at reasonable valuations, and are able to pay increasing dividends.
I said earlier in this thread that I own stock from the late 80’s where the share price then (the cost base), is LESS than what the stock now pays in annual dividends. I’ll let that sink in ….
Of course it depends on what your objectives are. There’s nothing wrong with folks who want to trade the market, but I’ve found that’s not for me. It’s unfulfilling and I never get it right
Too many headlines, too many talking heads and experts.
I get more fulfillment out of investing for long term to build wealth and I don’t worry about what the market is doing on a day to day basis. YMMV