Dear Investors: Don't Get Comfortable

By Austin Smith – Jan 24, 2013 at 5:15PM

DJINDICES: ^DJI

Dow Jones Industrial Average

Market Cap

Today's Change

(0.40%) $153.86

Current Price

$38,239.66

Price as of April 26, 2024, 5:18 p.m. ET

A warning to investors about taking the long view.

In this video, Motley Fool analyst Austin Smith has a message for investors: Don't get too comfortable with the current state of things. He reminds us that only a few months ago, the Dow (^DJI 0.40%) was way down and Apple (AAPL -0.35%) was at $700 per share. Now, Apple is tumbling, and the Dow is reaching historic highs. Austin tells us some of the factors behind these rises and falls and cautions against investing based on short-term market trends. He reminds us that the best way to invest is always to look at the fundamentals and make smart decisions about good companies -- whether the market likes them or not.

Austin Smith owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.