Distracted by sentiment? You’ve missed 16 per cent!

Roger Montgomery from Montgomery Asset Management says that if you get distracted by sentiment, you’ve missed 16 per cent! He says that It's not uncommon for markets to fall amid fear an ‘event’ might occur and then rally when the event does occur. And therefore act and buy or sell off sentiment data and ignore or forget the fundamentals of investing. That reason alone is a good enough one to separate yourself from the market’s distracting noise, to isolate yourself from reports of what prices have done, are doing or predictions of what they will do.

He says the U.S. economy is growing, which means we are on the right-hand, ‘boom’, side of the matrix.  With an inflation rate of 6.4 per cent, the U.S. economy is still experiencing inflation, making Gold, Real Estate, Commodities and high fixed cost, cyclical producers investments worthy of consideration.  But that inflation rate is coming down.  A declining rate of inflation is known as ‘disinflation’, and we know central banks are committed to bringing the rate down to t