Have you ever thought about the similarities between the stock market and the weather?
Both can be unpredictable, changing from day to day. But just like how people choose to live in certain areas based on climate, as opposed to daily weather conditions, the same applies to investing.
When people move north for more sunshine, they don’t expect perfect weather every day. They understand that storms can come through. They’re seeking a certain climate – a long-term expectation of what conditions will be like.
Similarly, investing is about focusing on the long-term climate, not just daily stock movements.
Sure, the market can be unpredictable, bringing rain one day and sunshine the next. But if you’re investing for the long haul, you’re expecting to be rewarded over time.
So the next time you’re tempted to obsess over the day-to-day market news, remember this: you’re investing for the climate, not the weather.