An Investing Mantra: ‘This Too Shall Pass’

(credit: David Amsler via Flickr)

(credit: David Amsler via Flickr)

My Mother used to comfort me when I was a small child when I was sad, by telling me that “this too will pass” knowing that the importance of the event that made me sad would diminish over time.

Eckert Tolle also discusses this idea when teaching us how to live in the moment in The Power of Now.

But I believe that the concept also has relevance to investing.

For example, markets never stay in bull or bear modes forever. Wherever we are at any one point time will pass, not always quickly, but eventually market conditions will change. The same is true of “hot markets” or “hot stocks” or “hot commodities.” Just because they are going up today does not mean that they won’t go down tomorrow. What goes up does go down.

But the opposite can be true — not always, but often enough. The stock that goes down can also go back up.

What does this have to do with our investments?
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