STE's Stocks Investing Journey

i mage credit to investinghaven.com Buffett once said: “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something.” What can we learn from the latest memo from him ( you may read the full memo here )? In his latest memo, he touched on the topic of “ market volatility” and “Pro-Risk behaviour” . According to him, although most of the valuations seem to point to high and overvalue scenario in major stock markets the “unacceptability of low returns on cash & Treasuries / Bonds couple with the attitude of “ FOMO “, continue to push the market indexes to higher high. Every week, we could hear or see the news of the market reaching a new record high, again and again.

<from my bookshelf > The behaviour of the stock market is inherently so complex that no single variable can predict how the market is going to behave next or what would be its future returns - at least not on a regular and consistent   basis.  Market swing like a pendulum from optimistic to pessimistic and occasionally overshooting which resulted in a panic situation. In the long-run, corporate earnings and dividends have provided a steady underlying stock market return.