Sitzfleisch: The stamina to resist the temptation of responding to these short-term influences.

This was legendary investor Howard Marks’ advice for investors in this market. The entire interview is worth reading in full. He makes 3 points –

(1) We’ve all experienced an extended era of low interest rates that distorts behavior.

(2) Things are not going back any time soon. Expect inflation in the 2-4% rates and expect higher interest rates. All the Fed can do is attempt to avoid stagflation – low growth and high interest rates.

(3) Take the long term view. Summon Sitzfleisch.