Our country, as well as the rest of the world is going through some very contentious times. I personally have never seen our country more divided than it is right now. There have been sadly, a large number of police killed by ‘protestors’.
Each time there has been a call for gun control. More regulations is not the answer. Perhaps we should just enforce the ones already in place.
It seems no one is accountable for their own actions. It is always the fault of someone else or something else.
There have been horrendous and cowardly terrorist attacks around the world. And there does not seem to be any effort to stop them.
Is this a lack of leadership? I believe it is. There has really been a lack of leadership in our country for quite some time. It seems everyone has their own agenda.
Many of the people I talk with remain pessimistic about the future. What if this happens or that happens? They ask. I’m not sure what will happen either short or long term. What I do know is that things will change. The only thing that doesn’t change is that things change.
Rather than trying to predict the future, which no one can consistently do, I follow my investment philosophy, which is that markets are efficient. In that, all the knowable information is in the current price of securities. Any predictions made are a guess. The markets going forward are random.
I believe that free markets work. I believe that economies around the world will continue to grow. What I do not know is what sectors or industries or products will grow.
Therefore we must remain diversified and disciplined.
There will always be short term volatility. My role as an investor coach is to keep investors focused on the long term. Trying to time the markets or pick the right stocks will lead to poor results, long term.
Your goal as an investor is to reach your long term goal. This is not done by earning the highest return possible. Earning the highest possible return can be accomplished in the short term, however it cannot be accomplished long term.
UNLESS, you believe that earning the market rate of return is the highest possible return.
The markets may not be perfectly efficient at all times, however they are far too efficient to take advantage of and improve returns.
Let’s reduce your anxiety and improve returns, long term.
Let’s begin to become accountable for our own future.
The poor results of many investors is not the fault of someone on Wall Street. But rather our own lack of discipline and our fear of the future.
To succeed long term you must own equities…globally diversify..rebalance.