At VIA IV investments, we consider ourselves permanent owners of our assets. When we buy an asset class, we consider owning it in perpetuity (of course with periodic rebalancing to keep our risk constant).
If the market goes up or down, or if the news media makes some comments good or bad, our exposure to these assets is unchanged because they will always be part of our portfolios.
One very public example of that played out recently, with media personality James Bianco in the middle of March. He was on CNBC when the market looked really bad. He made a statement that everybody should sell everything (again, this was in March 2020).
With our current headlines of geopolitical issues, China trade wars, viruses, there’s always a reason to get out of the market. There will always be “scary” headlines. However, it’s important to realize that you have to do something with your money.
Compared to the world of 30 years ago, the road to investing is filled with distractions. Advances in technology have made it possible to be active 24 hours a day, amplifying what’s called a fear of missing out (FOMO) in our lives.
As the saying goes, investing in real estate is all about location, location, location. Investing in a globally diversified equity stock market has a similar imperative: Patience, patience, patience.
Returns may or may not come when you want them to come, but successful investors are usually patient people. For example, when the S&P 500 had disappointing returns in the first decade (2000-2009), one would have had a less than zero return, yet that doesn’t mean it was a bad place to invest. Why? Simply put, it’s because we don’t know when the returns for asset classes will happen — but it may not offer any of the immediate gratification we’ve all come to expect in this society.