Have you been watching CNN …Yahoo Finance… Bloomberg? If so, let’s take a step back and get a little perspective. Here are 6 things I want you to think about.
- Markets are volatile by nature. We will have losses sometimes. This is why we diversify your portfolio so it’s not all stock. Remember that we have gains sometimes too.
- Generally investors that try to micro-manage investments – selling out and every down – are the ones who lose both psychologically and financially.
- Markets routinely sell-off – sell-offs are what make long bull markets possible. You could even look at them as an opportunity! Radical.
- No one can predict market downturns or market upturns consistently. If they could, they’d be on a beach somewhere not being a talking head.
- Remind yourself that investing is a long-term thing. What happens today, won’t matter much in a year, in 5 years or especially in 10 years. Think about what was happening 10 years ago and where you are now.
- If you don’t look, you don’t realize or experience the volatility. My best advice is to trust your investment strategy and turn off the media.
There is a reason why both Fidelity and Vanguard found that the best returns among their investors were people that (i) forgot they had an account or (ii) had died. In other words, the best performing investors just might be those that ignore everything and stick with their strategy through thick and think.
If you need more perspective; let’s have a conversation. Call me at 612 436-3733 or email me at jgilles@financialplanpartners.com
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Past performance is not indicative of future results.