This is common question during times of market volatility.
The Wall Street prognosticators on television, on the Internet and in the print media love to share their opinions on this topic. But, they don’t know.
The same thing is true of the prognosticators at the water cooler in your office or at your local coffee shop. They don’t really know either.
In the short run, nobody knows the answer to this question. Speaking hypothetically of course, consider this question: If any of these people REALLY knew the short term direction of the markets, then they’d put their ENTIRE NET WORTH on the line because who wouldn’t bet on a sure thing…. Right? But they don’t because they know that they don’t really know what will happen next.
Successful investing is a long-term endeavor.
To achieve personal investment results consistent with the long-term market performance averages, you must stay fully invested in the markets for the long-term. Being a successful long-term investor requires commitment to these four points:
- Invest in equities
- Diversify
- Rebalance
- Behave!
#4 is probably the most important of the four. It is the hardest to do. This takes commitment and it takes discipline.
Whenever I write or speak on this topic, I am reminded of the strong parallels to the health industry. It all sounds so simple. Eat less and move more. Yet, running along side that simplicity is our beloved United States of America where 70% of its residents are considered overweight.(1) Sometimes we need help. Sometimes we need a coach to help keep us on track.
Do you have a coach for your Wealth Building plans?
If recent market volatility has you or someone you care about concerned about your investment holdings and you’d like a second opinion, please contact my office TODAY to schedule a no cost, no obligation analysis of your portfolio.
Thank you for reading!
(1) CDC Fast Stats. https://www.cdc.gov/nchs/fastats/obesity-overweight.htm