What does this really mean for you?
But if you are a long term investor, looking to build and grow your wealth over time, this is no time to be scared. This is the time when you step away from the day to day market moves & news and focus on the long term picture of the financial markets. That being said, let me help you with that by sharing with you this chart …
Easy Money Theory
Don’t Try to Act Smart
“if I had only sold my portfolio at the top of those 2 peaks and then bought it back at their respective bottoms, I could have made a hell of a lot more money than what he’s taking about”
Well, my friend, unless you are a professional day trader or money manager, you should not try doing that at home. To illustrate that point, allow me to show you the same chart in another light ….
On a serious note, the reason you should not try to time the market is simply because there are many healthy corrections in a market and those corrections can put your money out of play for the market rally that can start at any time without any logical reason whatsoever.
So what should you really be doing?
Use this time of market correction to revisit your current allocation structure and plan to make changes as opportunities arise in the markets. Talk to your financial advisor about your portfolio allocations and your financial plans. If you don’t currently have an advisor feel free to give me or any of my team members a call to discuss your situation in detail. We would be happy to help you any time.
Hope this piece helps clears the confusion and nervousness caused by current markets. And please always remember that media outlets will have no viewers if they don’t dramatize market events.