Benjamin Franklin long ago said that the only two certainties in life are death and taxes.
At the moment investors are so gloomy, and their expectation are low that they not even thinking about taxes but just that they are all going to die.
Even more market crashes
“We are going to lose everything!“, “Stock market crashes“, “Experts are expecting a double dip recession” is the kind of stuff I am sure you have also heard and saw the last few days.
Along with “Growth is too slow for easy deleveraging, politicians are at loggerheads, and global imbalances have hardly diminished”.
Make it even worse
And if central banks respond with printing even more money, they could make markets more volatile, and the next crisis will be even more dreadful.
Gold as a safe heaven?
The Swiss and Japanese central banks both moved to halt the appreciation of their currencies, which have been competing with gold for the role of investor’s favoured safe haven.
Prominent investors such as John Paulson and David Einhorn of Greenlight Capital have bought gold as an explicit bet that the value of paper currencies are in danger.
At some point it will get better
But at some point things will turn around and get better.
It always does!
None of this means that the much-feared crisis may not arrive some time in the future but as you know it is impossible to say when just like it is impossible to time the markets.
Master your emotions
It is at times like these that we must remember what Benjamin Graham said “Individuals who cannot master their emotions are ill-suited to profit from any investment process.”
Also remember what Warren Buffet once said:”Be fearful when others are greedy, and be greedy when others are fearful”.
You have to be independent
This means you can’t do well in investing unless you think independently. And the truth is, you are neither right nor wrong because people agree with you. You are right because your facts and reasoning are right.”
Keep things simple
Past market turmoils and years of study have taught us here at Quant Value to keep things simple: we only do a few trades a month: 4 buys and 4 sells at most, it’s normally less than that.
We have a high probability system
But we know what we are buying works, because over years of research and more than 15 years of testing and real market experience we have developed a system that have a very high probability of giving you substantial market beating returns.
A system that will give you excellent long term returns irrespective of what the market does.
All you have to do is follow it.
Why you should follow the Quant Value investment model
To find out why you should simply sign up to receive our free report at the top right of this blog post.