Happy Halloween, everyone!
This is just a quick note to remind you of a few things about investing. We’ve had a great year so far. The markets are hitting new highs; the accounts are showing significant returns, and everyone is pretty happy.
To invest in the stock and bond markets, you must have emotional resilience. That is to say, it takes little discipline to stay with your investments when returns are positive. We all know the markets do not just keep going in one direction. Markets are volatile. We will have a correction; the markets will go down at some point. No one knows what will precipitate it. But it will be something that causes anxiety, fear, and worry.
It will be temporary. It always is. It is important to keep in mind that when stocks go up so much, we take some off the table and diversify them, such as moving some into bonds. When stocks fall enough, we begin purchasing more at lower prices. This is the old standby rule: buy low, sell high. This is called rebalancing, adjusting the portfolio to your target allocation.
We’ve been through a lot of them — some minor, some major — over the years. One thing that builds resilience is knowledge.
We are here to answer any questions you have. If you’d like a review of your account, give us a call.
To your Prosperity!
Aaron Wade, Kasey Claytor, Dawn Lopez, & Kelsey Bartholomew