One of my favorite Warren Buffett quotes is, “Remember that the stock market is a manic depressive.”
What he’s suggesting is that stock prices can sometimes swing wildly from day to day in response to even minor news. One moment stocks can celebrate comments from a Fed official, and hours later, they can vilify the most inane data points.
Buffett concludes it’s more important to keep an eye on your future and ignore short-term market movement.
You may have also heard of Sir John Templeton, the legendary mutual fund manager who pioneered international investing. He intentionally read The Wall Street Journal a few days late to avoid emotional decision-making based on a headline.
So take a lesson from two of the best. Avoid riding Wall Street’s daily roller-coaster so we can focus on what’s ahead.