Since the world is unpredictable, investors should focus on what they can control—how much they invest, diversification, investment duration, and emotional reactions to market fluctuations—rather than trying to predict short-term market movements based on charts, valuations, interest rates, elections, or other external factors.
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How World Politics Affect Stocks — StitchAdded:
[music] >> This is exactly why I don't waste time trying to predict what the stock market does tomorrow because the world is just unpredictable. And when I see people thinking they can study charts, valuations, interest rate, inflation, elections, wars, central banks, and then believe they are able to understand if the stock market tomorrow will go up or down, to me that is just crazy. That's why I would never build my investing strategy around predicting what happens in the short term and focus instead on what I can control. So, stop thinking about things outside your control and start focusing on what you can control.
That's what being a stoic investor means because the problem is not that the world is crazy. The problem is building an investment strategy that only works if the world behaves exactly as you expect it. So, instead of asking, "What will the market do next?" start asking, "Is my plan strong enough to survive even if I'm wrong?"
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