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Trust in the power of the market from "summary" of The Little Book of Common Sense Investing by John C. Bogle
The idea that underlies all our discussions is really a quite simple one. It is the concept of trust in the power of the market. In a world where the future is unknowable and unpredictable, where even the wisest and most knowledgeable among us cannot consistently foresee the twists and turns of the economy, we place our trust in the market itself. We trust that, over the long term, the market will reward the patient, the disciplined, and the diversified investor. This trust is based on a few key principles. First, we trust that the market is efficient - that is, that it reflects all available information and that prices are fair. Second, we trust that the market is resilient - that is, that it can weather the storms and shocks that inevitably come its way. And third, we trust that the market is ultimately rational - that is, that over time, it ...
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