Sounding Like a Broken Record
It is frustrating to turn on the news and see another negative day in the stock market. It certainly isn't pleasant to open your statements at the end of the month and see a decline in your account value again. It can be downright unnerving to listen to the financial media (and the politicians) painting yet another doom and gloom picture.
In these times, which can be very trying, you will face an incredible urge to do something. There is a desire to stop the bleeding and move to perceived safer havens. The question will undoubtedly come be asked, "Is it time to sell out of stocks?"
And, just like a broken record, we say the same things over again. "You have to be patient, wait out these things, and stay the course." "This is a very normal part of the investment process." These are not things we say to pacify our clients. We say them with strong conviction. "You can't time the market," isn't some catchy cliche'. It is the truth!
We have talked about investment return and investor return and the significant difference between the two. As you reflect on that concept, consider these two important items:
- It is too late to get out now--The time to get out of the market was sometime in mid-October. The exact day doesn't matter, because just like the fail-proof market timing system, the time machine hasn't been invented. We only know by looking in the rear view mirror, the precise time, or even the approximate time to move out of stocks and into other asset classes.
- It will be too late to get back in later--The same thing is true on the other side. You won't know the right time to move back into equities until it is far too late.
There will be many people who will make the mistake of selling a perfectly good equity portfolio at low prices, only to buy it back later at much higher prices. Please do not allow yourself to be one of them.
There Is a Reason to Own Equities
There are several reasons why people should own equities. The stock market has been a tremendous creator of wealth for decades. The stock market provides you the best opportunity to combat the single biggest risk you and all people planning for their retirement face--inflation.
The volatility in stock prices has always been there, (it is what creates the return we all need and desire.) The media coverage is the only thing which has changed.
This is, after all, about helping you achieve successful real-life results. We firmly believe that doing nothing is often better in the long run.
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Investments Offered Through Maplewood Investment Advisors, Inc. MEMBER FINRA, SIPC
Advisory Services Offered through MIAI, Inc.
Insurance Products Offered through Fleming Watson Financial Services, LLC.
email: nwatson@maplewoodinvestments.com
512 Third St. Marietta, OH 45750
(740) 373-4877 (800) 860-4871