Consider the Source: Irrational Markets

Originally attributed to A. Gary Shilling, one of our favorite sayings here at Omnia Family Wealth is: “The market can remain irrational longer than you can remain solvent.” For this episode of his “Consider the Source” video series, Omnia Family Wealth Co-Founder and Chief Operating Officer Michael Wagner offers insight into why this saying is so important for investors to remember and how an irrational market can impact portfolios.

Wagner specifically explains:

• Why Omnia believes stock market valuations are stretched and its impact on our allocations
• Why we stand by our opinion on the market despite others believing differently
• How the fear of missing out has caused some investors to pay very irrational prices for assets
• The importance of having an investment process and sticking with its framework
• How investors can use new information to adjust their investment process

During the video, Wagner emphasizes the importance of not giving in to the temptation to move away from your investment process and towards the crowd, especially when you really can’t see the sense in the crowd’s decisions. Instead, it is imperative to have patience and faith in your process and to always remember: “The market can remain irrational longer than you can remain solvent.”

Stay tuned for our next “Consider the Source” episode and please do not hesitate to contact us with any questions. We are available via email or phone at (305) 602-9080.