E Today's Craze Or Tomorrow's Calm?

Who causes the short term and long term movements? The first are traders, people or software programs that act compulsively by the day, hour or even second. They care only about price and vote for what’s in or what’s out at the moment. They are speculators.   

The other group treats a share of stock as part ownership of a business. Over time, these buyers and sellers weigh the quality and value of a business and make investment decisions carefully. These are investors. They take time to consider management, sales, cash flow, and more to weigh companies and make better decisions.  

Emotion and fashion govern prices in the short term, but thoughtfulness and endurance dominate in the long run. In investing, to act at leisure is to repent never. 

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Tom Jacobs is an Investment Advisor for separately managed accounts with Dallas’s Echelon Investment Management. You may reach him at more

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