Looking past short-term volatility is easier said than done. Community-driven stock market volatility has been hard to ignore this week, with several notable stocks more than doubling in value overnight and then promptly plummeting. Video game retailer Gamestop, movie theater company AMC, among others are the stars of this short-squeeze mania. The volatility has been so unusual that brokerages have now placed pauses on trading.
Nobody knows what the ultimate impacts of this community-driven stock volatility will be, and whether it will quickly abate and supply/demand simply rebound to prior levels, or whether there may be longer term ripple effects on blue chip stocks and eventually the global economy.
We are comfortable operating in any environment. Why?
- We have always invested with downside outcomes at the forefront of our underwriting.
- We generate a majority of our revenue from established companies with strong financial wherewithal.
- We DO NOT use excessive portfolio leverage.
So it’s time to talk the talk when it comes to long-term investing, and that (quite literally) means walking the walk. Go for a stroll in the neighborhood, read non-market related materials. Our human brains are all too susceptible to being overwhelmed by negative stimuli.
Stock valuations may change dramatically day-to-day. Such fluctuations are irrelevant to our process. Our focus is to:
- Maintain occupancy in any environment.
- Exhibit financial flexibility to capitalize on weak markets.
- Compound returns at an attractive rate over the long-term.
As always, feel free to reach out to us any time with your own thoughts.
Mr. Wills is the Marketing Director and Head of Product for Streitwise.
Prior to joining Streitwise, Mr. Wills was Head of Paid Media at Bitcoin IRA and Fortress Gold Group. Previously, Mr. Wills was the Director of Lead Generation at GTMA, a real estate marketing agency, where he founded the paid media department that oversaw a large nationwide portfolio of multifamily properties. Mr. Wills holds a Bachelor of Science degree in Marketing from the University of Florida.