The entire history of the stock market fits into five simple words: it goes up and down. We can’t know the schedule ahead of time, and this can stir up some stress in the short term. But it seems reasonable to guess this whole “up and down” thing may persist.
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My reading habits, always eclectic, have gotten a lot of exercise during the pandemic. I just read about an interesting health phenomenon, one that illuminates the things we like to talk about here.
“Autophagy” is the body’s way of recycling older or damaged cells and doing cleanup and maintenance. It seems to promote regeneration of new, healthy cells. The stresses of physical exertion and fasting are known to trigger increased autophagy, a sort of survival mechanism.
What could this possibly have to do with investing?
We recently chose to take advantage of a volatile day in the stock market to clear out a few holdings. It was cleanup and maintenance. Those sales freed up money with which to invest in newer ideas and opportunities.
Just as stresses trigger autophagy in the body, market volatility and economic change tend to trigger cleanup and maintenance in our portfolios.
Autophagy is believed by some to be a sort of an anti-aging process, keeping the body younger. Likewise, with our portfolio management, we strive to keep our holdings fresher, more in tune with the times. “In shape.” (No guarantees, of course. Autophagy does not guarantee perpetual youth, and our work does not guarantee returns.)
When you are ready to talk about the health of your portfolio, call or email us. Let’s talk.
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