A few years back, the financial media were all abuzz over a Fidelity study into the firm’s highest performing individual investor accounts.

Guess who they were.

Were they seasoned veterans of investing? Highly educated individuals? Whiz-kids deploying complex computer algorithms? Nope on all counts.

Fidelity’s top performing account holders were (drumroll, please)…those who had totally forgotten they had an account.

The accounts were left untouched for decades, which means the whims of human nature couldn’t negatively affect the returns that the compounding of the stock market has proven to produce over time.

Billionaire super-investor Warren Buffett aptly described this dynamic, in his 1996 letter to Berkshire Hathaway (NYSE: BRK.A, BRK.B) shareholders: “Inactivity strikes us as intelligent behavior.”

In praise of doing nothing…

Don’t get me wrong. I’m not saying that average investors should blindly buy and hold every stock in their portfolios. And the study only applied to Fidelity accounts, so its conclusions are more anecdotal than empirical. You shouldn’t put your portfolio on automatic pilot.

However, the study underscores a timeless rule of investing: Don’t make decisions based on ephemeral emotions. When you’re getting bombarded by alarmist headlines, take a step back and remain coldly logical. Typically, when the crowd is running for the exits, the smartest course of action is to stay put.

Contrarianism is a guiding principle of Mind Over Markets. Despite the increasing prevalence of “robo-trading,” markets are still governed by human beings, who in turn are driven by fear, greed and other emotions that cloud judgment. If there’s a common thread to my daily column, it’s to buck the conventional wisdom.

Fact is, average investors tend to buy and sell at the wrong times. Market tops make them “feel good,” prompting them to pile in when valuations are too high. You need to keep an eye on the long-term horizon, not short-term theatrics.

Which brings me to the stock market’s relief rally this week.

U.S. and global stocks soared Monday and Tuesday, as investors ran back to risk-on equities to make up for their earlier overreaction to the Omicron variant. Instead of selling when the COVID mutation first hit the headlines and then quickly jumping back in, investors would have been better off not doing anything and simply waiting for public health experts to weigh in.

Watch This Video: The Omicron Conundrum

On Tuesday, the main U.S. stock market indices rose as follows: the Dow Jones Industrial Average +492.40 (+1.40%); the S&P 500 +95.08 (+2.07%); the NASDAQ +461.76 (+3.03%); and the Russell 2000 +50.31 (+2.28%). The CBOE Volatility Index (VIX), aka “fear index,” plunged more than 15%. Tech stocks led the rally for the second consecutive day. Global equities rose as well.

In pre-market future contracts Wednesday, U.S. stocks were again trading in the green. After running scared because of Omicron, investors have regained their risk appetite as reports indicate that the variant is relatively mild.

Additional reassurance arrived Tuesday, when GlaxoSmithKline (NYSE: GSK) stated that new preclinical studies show that the drugmaker’s sotrovimab antibody retains efficacy against Omicron.

The purse strings are loosened…

This holiday season, a tailwind for equities is the growing willingness of consumers to shop and travel, even in the face of pandemic uncertainties. Take a look at the following chart, published on December 7 by research firm Statista:

The stock market drops when consumers get stingy. The converse is true. Despite recent turbulence, all signs point to a year-end pop in stocks. Strong retail sales in recent weeks suggest the likelihood of a “Santa Claus rally” this month.

Among the big gainers during this week’s stock market rebound have been economic reopening plays, including energy, industrials, and travel/hospitality/leisure. Beleaguered airline stocks have regained altitude, as consumers indulge their pent-up desire to travel.

Airports have been enjoying renewed passenger throughput, which should only increase as Omicron worries wane. Transportation is an economic bellwether and its resurgence is a positive sign for the economy and financial markets.

As cyclical sectors gain in appeal, I’m particularly keen on commodities. Accelerating economic growth, rising inflation, and greater infrastructure spending around the world are boosting demand for crucial natural resources, a trend that should play out for years.

We’re in the midst of a commodities “super-cycle” that’s resistant to pandemic scares. For details about our favorite commodities play, click here now.

John Persinos is the editorial director of Investing Daily. To subscribe to John’s video channel, follow this link.