The Weather and the Stock Market


We flew to the UK yesterday for our much anticipated annual trip to see all our wonderful family and friends.  For the past three months social media has been covered with the most beautiful photos of England enjoying the best summer since 1976.  If you are not a Brit, and you have never visited England in the sunshine, honestly, I may be a bit biased, but there is nowhere like England when the sun shines.  The problem is, the sun doesn't shine that much.  Until 2018, and then it doesn't stop shining.....right up until the minute the Loxton family set foot on British soil.  And then it rains. We are currently sitting in Sussex and it is grey, wet, cold and windy.  The temperature literally fell 20 degrees while we were on the plane.

Flying to the UK after an intense period of sunshine, and getting nothing but rain, made me think about how it feels when you pile into the stock market right after a long period of gains, only to see it crash just as you get in.

I think this is a really big fear for people, and often the reason why people hoard cash waiting waiting for a better time.

But you can't time these things, anymore than we could have done a better job timing our trip.  We had things on in May, June and July, we couldn't just jump on a plane and fly over as soon as we saw the sun out.  We came when we could.  Just as the weather turned.

However, I am warmed by the news that the weather will improve next week (just as we go to France)....Like the stock market, there will be a better day.  It's about hanging on in there.  In the meantime, I remember the mantra that there is no bad weather, only inappropriate clothing....

It's worth remembering this when the stock market turns.  It's really like the weather...hard (or impossible) to forecast, it can turn at anytime, you just have to make sure you have the right mindset, and then hang on in there and wait for the sun to shine again.

A nice cold glass of Pimms helps too.