Tesla CEO Elon Musk has finally responded to questions from his followers on the fears of a downtrend in the public markets with some simple advice to serve investors “in the long-term”.
“Buy stock in several companies that make products and services that *you* believe in,” said Musk. “Only sell if you think their products and services are trending worse. Don’t panic when the market does.”
Between the ongoing Russian invasion of Ukraine, fluctuating global oil prices, increased hostility and economic sanctions between Washington and Moscow, rising inflation and interest rates globally, and a perceived bubble caused by the COVID-19 pandemic — many retail investors are scared of a bear run on global markets.
Over the weekend, Amazon Founder Jeff Bezos was another high profile figure to point out a fear that the market may collapse soon.
“Most people dramatically underestimate the remarkableness of this bull run. Such things are unstoppable… until they aren’t,” said Bezos. “Markets teach. The lessons can be painful,” he added.
Speaking at Berkshire Hathaway’s annual shareholder meeting, Warren Buffett also had a similar take on the market, if less negative.
Speaking about the market, he said that we seem to be currently in a phase where the market resembles a casino more than an investment-oriented environment.
“Sometimes it’s quite investment-oriented, and other times, it’s almost totally a casino,” Buffett said. “It’s a gambling parlour. And that existed to an extraordinary degree in the last couple of years, encouraged by Wall Street,” he added.
