Market price matters at only two points in time. When you buy and when you sell. In between, it is only a distraction.

Short-term price action means nothing and should mean nothing to you. Keep your focus on long-term business growth.

Broad-market indexes like S&P 500 must rise over the long term. The upward path is the only logical direction. Prices can be suppressed for a short period, but eventually, the index will continue its course.

If you decide to buy a stock solely based on price action, you cannot and will never have any faith in the company’s business.

Long-term price growth has three factors: yield, inflation, and business growth.

Nothing wrong with buying high PE stocks; however, expected business growth must justify the high price.

Buy the business, not the price.

Prices are easy to understand, and it is easy to isolate or pick assets based on prices. Understanding the businesses and analyzing the risk is complex.

Analyzing prices is not wrong. However, picking inflated prices as your only source of information is terrible.