The first quarter of 2010 is officially closed for the markets. Both the Dow and the S&P 500 are up over 4% on a year to date basis, and nearly 50% on an annual basis. If we think back to where we were last year at this time, few pundits and TV personalities would have dared to imagine we would be here today. Those of you who made it through without panicking deserve a pat on the back. Whether you realize it or not, you had an intuitive grasp on what it means to invest that trumped the fear that you were being bombarded with. What you understood that the pundits and personalities refused to acknowledge, is that investing is not an exercise in predicting the future.
In the market of fear and greed, there is no good way to consistently know what lies just around the corner. It is folly to base investment decisions on trying to guess. What we are left with are a set of principles that if followed we believe will ultimately be rewarding. In that way the markets mirror life. It may not always be easy to stick to your guns, but if you do you will have done about as much as you can do to avoid devastating and permanent losses.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).