“The market has reached too high a peak and we are due a pull back. The market can’t keep going up like this.”
I agree; they are right.
We must be getting close to a correction. The problem with all this discussion is that there are three incontrovertible truths.
We cannot say when, which shares or at what market level the correction will begin.
We can’t call the top of the market. We can’t say when the correction will end. I don’t know how far the markets will fall; whether the dip will be deep or shallow. And I won’t know when they have fully turned.
What I do know is that however deep or shallow the market correction is, it will be temporary. The permanent uptrend will continue.
In the meantime, a correction will be an opportunity for the accumulator, a relative non-event to the fully invested, and a blip in the investing careers of everyone. This time will not be different.
Knowing these truths, you, as a long-term investor (not speculator) will refrain from changing the plan we have carefully crafted for you. Remember, the only ones who lose money in shares are the undiversified and the investor who capitulates when the market shows its normal volatility.
If we stick to our plan we can ignore the noise of the papers and media consultants.