By Scott Ronalds

Falling markets are no fun. It sucks to see portfolios fall in value on what seems like a daily basis. Our clients are understandably nervous. The phone calls are picking up and the conversations are getting tougher. The office Nespresso machine is getting a workout.

And then there’s the boss. On a morning when the market is down 300 points and I’m grumpy, he’s proverbially rubbing his hands together and writing a trade ticket to increase the Founders Fund’s weighting in stocks. Here’s a guy who’s wired differently.

“Take a step back and look at the fundamentals,” he says. “There are some hot spots for sure, but the world isn’t going to end tomorrow. Good quality companies are on sale. When people are scared and valuations are reasonable, it’s a great time to buy.”

I know he’s right. I also know that it can be difficult to listen to the same message repeatedly. Stick to your plan. Stay well diversified. Don’t make knee-jerk decisions. Think long term. Tune out the noise. It can sound like a broken record when your portfolio’s fallen $15,000 over the last three months. But it’s wise counsel.

The thing is, stocks are stubborn in the short term. Falling markets can make us nervous, insecure, even surly. But over time, markets rise. We’re in a weak market now, and it could get weaker. We don’t know. Nobody does. But what we do know is that it will eventually turn around and climb to new highs. If we can buy world-class companies at better prices than we could three or six months ago, send it in. It will position our clients to profit more when the rebound comes. As cavalier as it sounds, weak markets are the best friend of long-term investors.

The most important thing you can do right now is ... wait for it ... stay diversified and stick to your plan. Our managers are doing the heavy lifting behind the scenes. We’ve been doing more buying lately, and some selling, to better position your portfolio for the eventual rebound. If you want to talk or vent the next time the market drops, give us a call. We’ll listen. We’ll pour another espresso. We’ll offer a steady hand.