More pain to come
“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”
– Federal Reserve Chairman Jerome Powell, saying on 8/26/22 that he anticipates more interest rate hikes. Powell said the Fed will continue to “use our tools forcefully” to fight inflation. Read more of CNBC’s coverage at cnb.cx/3PTuUqP.
Harder than it looks
“The great rewards [of] long-term investing only exist because it is so difficult to do. Doing very little feels like the easiest task in the world, but the temptation to act is so often overwhelming. Every day brings a new story, a new doubt, a new opportunity. A new reason to be a short-term investor.”
– British investor Joe Wiggins, writing on his Behavioral Investment blog on 8/9/22 about one of 10 things most investors believe they can do but can’t: “Be a long-term investor.” Read about the other nine at bit.ly/3R9hXKE.
Job one
“As the manager of your portfolio, you should do one thing really well, and it’s to be a methodical implementer of a predesigned plan.”
– Rubin Miller in an 8/4/22 post on his blog, Fortunes & Frictions. Read more at bit.ly/3Qpmqsk.
A bull in bear’s clothing?
“Hey, what’s 20-[to]-22% between friends when you’re already up 300 or 400% and all of the underlying foundations are positive?”
– Money manager Barry Ritholtz, in an 8/19/22 interview with Bloomberg. He describes the period earlier this year when the U.S. stock market was down more than 20% as a cyclical bear market in the midst of a secular bull market. Watch the interview at bloom.bg/3Te4aEl.
History-making events
“Things that have never happened before happen all the time in the markets.”
– Ben Carlson in an 8/23/22 post on his blog, A Wealth of Common Sense. When trying to get a sense as to where the markets will go from here, he said the lessons of history will only get you so far. Read more at bit.ly/3QT6oHw.
