Investing and Farming: Know the Climate

The longer I manage money, the more it looks like farming. In mid-February 1992, we had 70º weather in Pittsburgh. While looking at the calendar one day, I started to ponder how a farmer without a calendar would know whether it was February, normally a poor time to plant crops, or April, normally a good time to plant. Of course, this very problem resulted in the invention of the calendar in the first place. It then occurred to me that investing in the stock and bond markets isn’t much different from farming—but without the benefit of a calendar.

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