General
Focus on the Horizon
When I was young, I used to go fishing with my father in his boat. Not being much of a sailor, I often succumbed to the motion of the waves when there was a big swell. All I wanted to do then was to get my feet back on firm ground. I still remember the advice my father gave me to help me last the distance back to land.

When I was young, I used to go fishing with my father in his boat. Not being much of a sailor, I often succumbed to the motion of the waves when there was a big swell. All I wanted to do then was to get my feet back on firm ground. I still remember the advice my father gave me to help me last the distance back to land. He would tell me to focus my eyes on the distant horizon.
By looking at a steady point far away, the ups and downs became tolerable and, after plenty of practice, I didn’t even notice the movement. Now, as an investor, I find I can use the same technique when markets become volatile. The horizon on which I must stay focussed is my ultimate investment goal and if there is no good reason to change it, then the short term ups and downs should make no difference to my investment strategy.
Markets move in cycles and as surely as the sun will rise every morning, markets that have dropped will rise again. The value of a diversified investment portfolio will move in waves that fluctuate within a band on either side of a long term trend line; never reaching either infinity or zero.
Share prices are driven by two major forces; market sentiment (fear and greed) and market fundamentals (economic and financial performance). Market fundamentals set the upper and lower limits of value, while market sentiment is the driving force between the upper and lower limits. When the market drops, it is time to look for bargains. There are opportunities to make long term gains by investing in markets and companies that have solid economic and financial prospects, and which will experience a rise in price when the market sentiment changes.
- Social Media3 years ago
Top 5 Advantages and Disadvantages of Social Media Marketing
- Management8 years ago
The man who destroyed his multimillion dollar company in 10 seconds
- Management3 years ago
The Five Common Materials Used to Manufacture Reusable Grocery Bags
- Management8 years ago
If you fail to plan, you plan to fail
- Management2 years ago
Unexpected Death of a Business Owner: What Happens Now?
- Accounting & Finance8 years ago
Do You Have a Poverty Mentality?
- Management8 years ago
Workforce Planning – Balancing Demand and Supply
- Innovation4 years ago
5 Ways How Globalization Impacts Small Businesses
- Management2 years ago
Have An Eye for Eyewear? Here’s How to Start Your Own Optical Business
- Management3 years ago
7 Essential Tips For Opening a Mechanic Shop
- Management2 years ago
The Importance of Presentation Skills in Business
- Management3 years ago
Pros and Cons of Offshoring