Fed Thoughts

Awaiting the next signpost

The Fed is going to say some things today and the market is anxious to see what those things are. Regardless of whether those comments are good, bad, or neutral, we should consider the long-term perspective on things.

In the short-term, policy could reward certain kinds of companies or market sectors and punish others. But, in the long-term, every company and industry will have to deal with times of positive and negative support and the broader business cycle.

We could focus on picking up short-term trends and attempt to out guess other investors by rotating into fashionable winners and out of the losers. But, it’s hard to anticipate what is, often times, a highly luck-dependent future path.

In the longer-term, we get to smooth out a lot of the short-term noise to just focus on owning successful businesses. While there is luck in this too, we at least can remove some of the craziness along the way and give more attention to the underlying fundamentals that drive a great business.

So, if you find yourself lost in the noise, come up for air from time to time to focus on the long haul!