This year was off to a terrific start1, but as the calendar turned to February, the markets provided a sobering reminder that volatility is always part of the investment process. Of course, while the road was smooth for quite some time, in many an investor’s time horizon, 5% sell-offs, 10% corrections and even 20% Bear Markets are normal. But they are often insignificant when viewed through a longer-term lens.
We believe investing is like farming. You plant the seeds, tend the fields and eventually harvest the crop. Yes, there are storms and volatility. But you don’t rip up your crop up and start over just because a storm blew in. Patient, consistent investing is the key to long-term gains. Our
Prudent Speculator Newsletter Portfolio has averaged returns of 17% per year over its 40-year history of value investing2. Yes, Black Monday is part of that timeline. The market dropped 20% in one day. But patiently staying the course has rewarded us well.
Post-Election observations on market performance.
Dow 25,000 and beyond – Is the market super heated?
What caused last year's rally?
How common are market fluctuations?
Dividend-paying stocks are among our favorites.
John Buckingham - AFAM Capital Chief Investment Officer, Editor - The Prudent Speculator Newsletter
"Our ability to predict the future is no better than anyone else’s. But tackling this foggy financial hill based on sound analytical principles has yielded returns of 17% per annum over the last 40 years1."
Download the report and see what 40 years has taught us.
". . . for 15 years you've quietly beaten Buffett's record"
- April 10, 2015†
"It pays to have nerves of steel. That’s the most important lesson to emerge from the Prudent Speculator’s position as one of this country’s most successful investment newsletters of the past four decades."
- February 23, 2017††