Swimming with the Undertow
Like swimming against an ocean current, fighting markets is exhausting. Long-term investors are better served by working with markets, not against them.
I recently spent several days at the beach with my children. I mostly unplugged from work, since keeping three kids lathered in sunscreen and away from beached jellyfish is a full-time job. But eventually my thoughts drifted to the power of markets as I watched the kids battling ocean currents. Within minutes, the undertow had carried them 100 yards down the beach. My only exercise for the day was continually walking over to retrieve them.
What does this have to do with investing? Anyone who has spent time in the ocean knows how hard it is to swim against the undertow. If you’re caught in an unexpected current, the best course of action is to swim with it as you make your way back to the shore.
This applies to investing as well. Fighting against the current of markets by trying to time them or outguess their prices is often a losing proposition. But harnessing the power of markets by riding along with them has allowed investors to build wealth over time.
EXHIBIT 1
Russell 3000 Index, 2001–2025
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