There is a quote in the Akre Focus Fund’s commentary that really stood out as to how to look at the current market.
Today, with fear reigning supreme, cash is the investment of choice, while equities assume the mantle of most despised. Perfectly understandable—and thus to be resisted! Because whatever the timing of the eventual recovery, from whatever bottom it begins, one thing is certain: cash will not be how investors recoup bear market losses.
It has been painful to watch your portfolio drop so much in 2022. It is even painful to put the limited cash investors have to work by buying equities. And it is even more painful when you watch the most recent buy drop right after you buy it.
Although as an investor you have to buy quality companies when they are selling at cheap valuations and when no one wants to buy them.