I’ve had people tell me recently that “It’s Different This Time” when talking about the recent market declines.
The following quote summarizes my thoughts about how the current situation should impact your investment strategy:
“The four most dangerous words in investing are ‘it’s different this time.’” Sir John Templeton, Legendary Investor, Money Magazine, Fall 2002, P. 25
The following article by Allan Roth makes a great case for staying with your investment strategy.
Please send me your comments and questions.
Lately I’ve been hearing, a lot, that this stock market decline is different. So different, apparently, that many investors are actually changing their investment strategy based on this belief. Let’s examine the argument.
It really is different this time
Never before in our modern history have we had major European governments on the verge of default. Nor has the US ever experienced a downgrade of the sacred US Treasury, as was recently done by Standard and Poors. Indeed, the whole belief in paper currency seems to be in question, which is likely why investors have flocked to gold.