In my video this quarter (you have watched it, right?), I mention the long term nature of investing in stocks and bonds, with the presidency a relatively short term event.
Don’t fall into the trap of thinking all positives or all negatives because your party (or the other party) is in power.
We give too much blame and credit to the President, and when prudent investors have a long time horizon, it is better to stick to the strategy appropriate for you and your risk level, and don’t get emotional.
In May I was in New York City, and the highlight by far was the interview I did with Financial Advisor IQ (division of Financial Times) on biases.
It was really fun, and focused on the types of emotions and biases that investors have to be aware of and overcome.
The producer liked the interview so much that he decided to make it a 3 part series, so the link below is only for the 1st of 3. The rest came out in July and August, so I’ll link to that in a subsequent newsletter.
Anyway, pretty good interview, so I hope you watch it.
In May I was in New York City, and the highlight by far was the interview I did with Financial Advisor IQ (division of Financial Times) on biases.
It was really fun, and focused on the types of emotions and biases that investors have to be aware of and overcome.
The producer liked the interview so much that he decided to make it a 3 part series, so the link below is only for the 1st of 3. The rest will come out sometime in July and August.
Anyway, pretty good interview, so I hope you watch it.
As a follow up to my video above, I like the article below because it talks about the tendency to judge financial markets in periods that are so short that it results in higher fees, higher taxes, and lower average performance.
With the 24 hour news cycle, news alerts, etc., we are constantly bombarded with information, and the true professional learns what to listen to and not.
With an unmanaged stock market index going back to 1926, 73% of the time U.S. Stocks were positive. When you add in the “slightly negative” column of declines from 0 to 10%, that adds up to about 87% positive or slightly negative.
The future could absolutely be different, and you have to ensure it fits with your individual goals.
