Right now, we are experiencing an equity market that seems to, for the most part, go up. Eventually we will experience a longer period of down market.

Many investors lament the downs of the market.  They feel that the randomness is cause for complaint and pain. 

It has been said that people want to avoid down markets or risk much more than any potential reward. That said there continues to be many people avoiding the equity markets because of this fear

Emotions drive many investors to make the wrong choices. Emotions cause them to buy high and sell low. Which of course, is opposite the number one investor rule. Buy low and sell high.

Conversely many investors observe an asset class that has done very well during a relatively short period of time. They then want to concentrate their investment portfolio in that asset class. This is usually another case of buy high and sell low.  

Investors should remember that the equity markets are random and unpredictable. The unpredictability makes stock picking and market timing unprofitable over the long term.

In reality the unpredictable ups and downs of the market are part and parcel of its superior long-term rate of return.  Volatility is the only reason the market offers a risk premium. 

Celebrate the uncertainty.  It contains the seeds of growth and wealth creation.

To reach your long term goals you must own equities….globally diversify….rebalance.