I am reminded of one of Warren Buffet’s comments on investing – “its simple, but not easy”. It is simple because stock represents a share of a business. That business has management teams that are committed to reaching new markets and growing their businesses. That is why the value of these businesses usually increase over time.
It is investor fear at times, and greed at other times that cause the market volatility. In fact, according to Standard & Poors there is a correction of more than 20%, or more, on average about every four years. In spite of that we know that owning equity in good businesses is the best way to build wealth over time. Part of the price to owning that equity is some pain, some anxiety and some worry.
We all know the benefits of not panicking during periods of market volatility. We know that we should “buy when others are fearful” (according to Warren Buffet) - but it is hard. But remember that for every 1% drop in the market, you are adding to your average future returns.
We know all this, but this is harder to do when we are scared about losing our capital permanently. This is the “not easy” part. Let us help you be objective, let us help you take the emotion out of making investment decisions. Let us show you how your portfolio is working to ensure that you have your current income needs met; or that you have parts of your portfolio that you can use to take advantage of the market that is on sale for you. Let us help you successfully reach your long-term goals, by making these important decisions today.
If you have concerns, or want to talk about investments, or just to talk, we encourage you to give us a call. Talk to any member of your team – Marc, Ty, or BobbieJoe. We are all here to help you stay comfortable and to help you make the right decisions about your investments, and your future.