Market Updates
Last January, we predicted that things would happen in the markets. And lo and behold, we were right. This year, we're predicting that some more things will happen. We don't know what they are, but hey, even living in the craziest possible timeline hasn't made a dent in the markets so far this year. And you should still do exactly what you have always been doing:
1. Focus on what you can control.
Instead of worrying about external events, keep yourself targeted on what you can change. For New Year's Resolutions, that means your resolution shouldn't be "Get to a million dollars in net worth." You can't control that, and you'll go crazy trying. Instead, pick something like "Max out my 401k contribution." Over time, the right decisions will lead you to the right outcomes.
2. Don't sweat the swings.
Did we just say "Over time"? The markets are all about the long run. As Peter Lynch said, "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." Don't react to short term swings.
This year, our clients did magnificently well staying the course, and your portfolios recovered solidly after the crazy swings in the early part of the year. Keep ignoring Jim Cramer and CNBC, and if you ever get antsy, just pick up the phone and give us a call. That's what we're here for.
3. Remember that we have a plan.
If your plan hasn't changed, you shouldn't change your plan. Reacting to markets often leads to worse outcomes than if you had stayed with your long-term strategy. I'll repeat this adage every year: if the markets go crazy, "Don't just do something - stand there."
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