“Every journey in life has a destination.” — Ken Poirot
In today’s video, I share a conversation I had with a friend of mine, who is a surgeon. How does he handle things when the surgery outcome is unknown, and in the middle of the operation if things go awry? How do you stay calm?
What he deals with on a daily basis is the same as investments and your financial plan. How do we keep our eyes on the big picture? What is normal, and how do we stay calm?
One of the benefits I bring to my relationship with clients are the 24 years of experience, and in that time I’ve seen just about everything. The behavior and attitude we bring as investors is probably the most important variable in reaching our financial goals. At least, that’s been my experience.
It is normal for there to be corrections with a generally bullish market, which we’ve been in for 6 years now and I believe will continue.
The chart above does NOT mean our RED line will continue, as it could be the end of the bullish trend. I don’t think so, but it’s possible. I’ve made the argument many many times why I’ve come to my conclusion (see previous newsletters and videos going back 2 to 3 years).
We have 3 months left in the year, but more importantly, if you’re invested in the stock market in any way, you should have years in your time horizon.
Federal Reserve Chair Janet Yellen recently spoke, and was very blunt about her belief that raising rates later this year is a good thing, and will in fact happen.
I’ve stated before that the markets hate uncertainty, and would rather know a bad thing than not know a good thing.
But, we’ve all been expecting this rate increase and it’s being priced into the markets, at least in my opinion.
That’s a good thing.