It’s all a matter of perspective. Most people wait for a “good reason” to get into the stock market. They want a shortcut — or better yet, a crystal ball. The truth is that there’s always a good reason to invest now, because everyday stocks have an expected rate of return. With this mindset, you’re always in. You just have to stay in at all times, and you will get the returns.
Did you get me in at the bottom?
If there is a bottom to be found, we’d be ecstatic. But that’s not the way it works. You don’t have to think about tops or bottoms. You just need to be exposed or “in” the market all the time.
The important point is to have the discipline at all times to stay with your predetermined allocation that you decided on in the cold/rational moments. As great businesses inevitably increase earnings and productivity, your investments will follow suit.
It is unfortunate to watch people dance in and out of the market. And many of them retire their dancing shoes permanently, and way too soon. Although they may not have to absorb the volatility any longer, sitting cash is the biggest risk of all because it loses to inflation over time. Even though watching from the sidelines can feel good, the loss of potential earnings is an insidious and slow certainty.
VIAI V re-balances our clients’ portfolios on a consistent schedule. We consistently buy and sell as the market changes. This technique is the closest that anyone can get to “the bottom.”
Let us help you stay in, sit back, relax, and enjoy knowing that you are doing the right thing! Contact us today if you have any questions about how you’ll live out your retirement years.