I would like to begin this memo by saying that, as a New Yorker, my thoughts and prayers are with everyone in this time of suffering. Everyone in New York City, and across the earth. This Too Shall Pass.
In the last 22 years, I have studied that the most important aspect of successful investing is indeed, to stay the course. Stay The Course does not mean to never make any changes to your investment portfolio. But rather to not try to Time The Market. The biggest mistake that you or a loved one can possibly make right now is to 'sell' your stocks when the market declines - as it just did during March and April, 2020.
You cannot Time The Market. Nobody can. Sure, we have all read about some genius who shorted the market in 2008, or someone who shorted the market in March, 2020, but this is the rare exception of someone making a lucky move. Yes, I said lucky move. Odds are that they will also make a 'bad call' in the future and lose as much or more. This is not investing. This is speculation. Be an investor, not a speculator. There is no way in the world that anyone can predict the short-term fluctuations in the stock market perfectly on an ongoing basis.
HOWEVER, we can and do make accurate decisions about our investment portfolio over the long run. For clients of our firm, the long run is ten years out plus (we actually plan our Wealth Management Goals for clients fifty plus years out). You should use that ten year time frame as a minimum as well, in my opinion. Again, you cannot time the stock market.
Time In The Market is your only fool-proof strategy when it comes to investing in the stock market. But don't take my word for it. As you can see here on the following link, courtesy of Franklin Templeton, $10,000.00 invested in the S&P 500 50 years ago, would be worth $1,539,136.00 (as of December 31st, 2019). True, that might have declined since 12-31-2019, but you get the point: https://www.franklintempleton.com/forms-literature/download/IBS-SIDFL
These facts are amazing, and are irrefutable. If you look at the chart closely, you will see that your $10,000.00 investment 'survived' all of life's major events: Inflation of the 1980's; Gulf War I; Gulf War II; Y2K; 9-11; 2008 Crisis; BREXIT; etc.
So, when you hear the media making Armageddon predictions and scaring you out of the market, try something different. Try reading the chart again as reassurance for your long-term Wealth Management Goals. After all, you aren't investing for today, you are investing for tomorrow.
by George Antonopoulos, M.B.A.
©April 19, 2020; All Rights Reserved
Wall Street Investments
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Disclaimer(s):
The Information Contained Herein Is Based On Data Obtained From Sources Believed To Be Reliable. However, Such Data Is Not Guaranteed As To Its Accuracy Or Completeness And Is For Informational Purposes Only
Always consult the advice and counsel of a Wealth Manager who is a Fiduciary.
Understand that past performance is no guarantee of future results when investing.
Investing in stocks and bonds carries significant types of risks in all types of market environments. Investing in stocks and bonds does also carry risk(s) of losing your entire principal investment. You should always consult with your Financial Professional before purchasing any investment to examine its merits, and to weigh its risks. There is no such thing as a ‘guaranteed investment’ and you should be very skeptical when you are told that something is ‘guaranteed’, unless of course it is an instrument backed by the Full Faith & Credit Of The United States Of America.
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