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Bernard Baruch said that when he was given
a stock tip by a shoeshine boy, he knew it was time to exit the market.
He did. The year? 1928. When a 24 year old named Sleek, and his 21 year
old friend called Frizzy give investment advice to denizens of a Web site
dedicated to young investors, is this a portend of something about to happen?
I don’t claim to know. But what I do know is that my clients aren’t worried.
Why? Because they have a financial plan in place that greatly increases the probability of them achieving their financial goals. Because their plan takes into consideration many factors that when combined, creates a solid foundation of financial health. Because market timing is not a tenet of good financial planning. Because I educate and remind them that investments entail risks. |
So much in the media bombards
us about the next potential hot tech stock, about day traders, about most
managed mutual funds not beating their benchmark.
Your financial planner is your little voice reminding you that most of it is just noise. That the market will take a big long hit when we least expect it (but always obvious in retrospect). That sectors of the market other than the S&P500 will have their time to shine. That as long as you are getting the investment returns you need to achieve your financial goals with the least amount of risk and within the time frame you want, it’s ok to leave some money on the table. Someone should explain this to Sleek and Frizzy. |
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734 Miller Avenue, Freeport, NY 11520 |