It’s that time of year again. Flowers are starting to bloom, but so are those pesky weeds.
Ever notice how you never get the same weeds twice — the varietals, amount or in the same location?
This is because the timing of falling autumn seeds is always different. The winter winds are always different. How much precipitation we get is always different. Temperatures, storms, natural disasters, human intervention (e.g. someone cuts a bunch of trees down), etc are always different.
All of these factors play into what weeds we get, how much and where. Everything affects everything.
Despite the year-to-year randomness, however, the long-term pattern remains. Flowers bloom in spring, thrive in summer, wilt in autumn and hibernate in winter — continuing forever.
Same thing goes for the markets. Trends — whipsaws — trends. The never-ending cycle.
We never know which markets will trend or whipsaw next. Which way they’ll move or to what degree. We just have to manage the unknown, the short-term chaos by making healthy decisions and keeping the faith that there will be enough trends to overcome the whipsaws.
Recently, a lot of weeds have popped up in our trend-following backyard. While annoying, this is life in the markets. This too shall pass. We just have to stay on task and keep pulling them, so they don’t steal too many resources from the beautiful profit-providing flowers.