The Siren Song of “The Market’s Too High”

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A strong stock market can make some investors nervous. Understandably, people worry that whatever goes up must come down. The emotional “let’s get out and wait for the correction” reaction to a strong stock market is one investors often regret. 

This month, we’re going to look back to March 2000, the top of the greatest bull market of all time – the top of the dot. Com bubble and examine how investing at the very top would have affected your retirement portfolio.

After nearly 22 years of holding on, you would have achieved an average annual rate of return of just over 7.5%. Pretty impressive numbers considering you invested at the very top of a bubble.

Timing the market and picking the lows is nearly impossible. For long-term investors, it’s best to ignore the ups and downs of the market. Instead, focus on your long-term financial plan. That’s it. Don’t rule out investing when the market reaches new highs—it’s supposed to do that!

Thinking about hiring a professional to help you implement a long-term financial strategy? We would be more than happy to set up a 30-minute discovery call to get a better understanding of your unique situation.

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Nine Recessions

In this month’s client’s corner, Nick Murray discusses the eight, almost nine, economic recessions that have taken place in the United States since 1970.

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