I am reviewing the CPB numbers which track global trade volumes. Since 1961 trade volumes have fallen only three times: 1975 by %1.9%, 1982 by .9% and last year by a staggering 13.2%. What descriptive language can I use to impress the degree to which the world economy peered over the brink as a result of the financial crisis? When share prices were falling through the floor only a year ago, I felt like I was asking clients to buy burning, hot rocks. It kept me awake at night. Yet, I kept thinking to myself, “Ben, Brazil’s Vale, SA is the second largest diversified mining and metals company in the world. You know their financial statements, their governance, their assets. This crisis won’t last forever and VALE is prepared to weather it. Buy! They are on sale.” Even experienced money managers deal with doubt. I always remind clients that volatility is here to stay and we need to be prepared to stomach even drastic market swings. This is why we stay as liquid as possible while still having the courage to engage equities. In the end, however, great investors are fundamentally patient optimists.
Patience Is A Virtue
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