Value Investing, Videos

Market Correction Got You Down?


Market Correction Got You Down?
Curreen Capital
Published on Feb 17, 2016
The Markets have dropped, in some cases into bear territory. Everyone (long) seems a bit down. Here’s how to think about it.

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The bears are back in 2016
The bears are back in 2016!

0:00hitter you might have noticed that the stock market has gone down so far this
0:03year 2016 and every week look at the portfolio and society and the
0:14interesting thing is I keep talking to people and they tell me you know once we
0:18get past the stiff upper lip and you know the son of happiness and everybody
0:25feels better right now everybody is looking hard at their mistakes from last
0:30year they looking inside what did I do wrong
0:34oh I did that run it added that run into that wrong and I saw Canon loser and I
0:38just want to give him a hug as always think of that phrase beatings will
0:43continue until morale improves and their not ok to improve morale in a way to
0:48improve thinking so I want to give these people up and I'm reminded that this
0:52time of work by inspector wrote in the Q-three bellcore's letter last year when
0:57he retired and he wrote that there are two types of markets and two types of
1:02opportunities that you can take advantage of the first is needle in a
1:07haystack what are you looking for a spin off for bankruptcy exit or somewhere
1:11transaction or something that isn't really understood and you can pick out
1:14something very special that is misplaced and you can buy it now you can sort it
1:20but talk about that and that's one sort of thing and that's that's a general
1:26thing that I've been doing over the past few years the second type of market
1:30where you can find opportunities and take advantage of opportunities is the
1:34tide goes in and the tide goes out and right now the tide is going now you look
1:40at your portfolio it's probably decreased in value each week all year
1:45and maybe even back in December too but it's been many weeks of just pain feels
1:51like mister market has just come up in like plunged everybody in the gut and
1:56that sucks and when I want to say is like a everybody feels that way and be
2:02as value investors we have our third pillar of value investing which is don't
2:08let mr. market's moves influence your actions
2:11mister market moves are certainly going to influence your emotions and that's
2:16gonna feed into your thinking and it's going to distort how you view the world
2:19and you're gonna be depressed and sad and you know thinking hard about what
2:22you can tell right now that's that's not where I would go with this what you want
2:30to do is say hey everybody feels bad right now I feel like I just got dumped
2:36its terrible and I want to say to you that feeling in your stomach like you're
2:42a loser that feeling is your body telling you that there are opportunities
2:46out there for you to take advantage of you think it is it's not like I suck it
2:51means there are opportunities that's what the opportunity alarm sounds like
2:55when the tide goes out it sounds like you got dumped so look around where are
3:02the opportunities that you can take advantage of his now is the time to go
3:06look for a noting that the market had bottomed announcing that things are
3:10going to start going up or anything like that but I am saying everybody feels bad
3:14and that means that you can find something that you can take advantage of
3:19to go hunting let me know in the comments if you find something amazing I
3:23wanna know it is thanks guys