Sonoma County Investment advice: It’s Time for you to Take Control of Your Finances!
Some recent headlines and themes in the media:
“The market has had many more positive years than negative years.”
“The S&P advanced in 63 of the 87 years from 1928-2014.”
“When it seemed like the market was coming apart, the S&P recovered.”
“The S&P’s compound returns are especially encouraging.”
“The lesson? Stay patient, and keep the big picture in mind.”
This is all advisor-speak for “please don’t fire me.” They’re trying to encourage you to stay put, using nice little phrases like “stand your ground,” “think about the long-term,” and “now is not the time to sell.” I know that is all rubbish!
Big investment firms put out impressive “White Papers” on the subject of staying in the market through its ups and downs, written by PhDs and Chief Economists. They even make it sound very, very convincing. But, of course, you know they are trying to save their tail-end. The success of their business and their personal livelihoods is on the line.
I propose that you dump their “buy and hold” philosophy and replace it with a smarter “tactical tilt” philosophy. The methodology behind this calls for a tilting of your investment allocation to be in sync with the movements of the economy. In times of growth, you hold more stocks. In times of correction, you hold less stocks. This approach is much more natural, not to mention less painful.
It’s time for you to take control of your finances and not just go along with the rhetoric of Wall Street. If you lost in 2008 and you’re losing again now, do something about it! You are in charge.