Time Matters, Not Timing (From the desk of David Richmond)


I saw this graph from Brian Feroldi that I thought was worth sharing:

One doesn’t know on a particular day or week if the market is going up. And while history isn’t guaranteed to repeat itself, if it is any guide, we know the longer you let the markets work, the more consistent the potential outcome. 

As you can see in the graph, if you look at returns over decades instead of years, or years instead of weeks or days, the returns are more predictable and consistently positive.

Let’s continue to stick to strategy during the loops and curves and uphills and downhills with a long-term focus. Do you find yourself feeling nervous? Take a deep breath. Don’t trip over yourself while trying to make sudden moves. Ignore the media hysteria. Maybe it’s time to turn off the T.V. and/or stay off the internet. Make sure to review the solid, rational reasons you had for choosing your investments.

Staying calm can help you see past the temporary shakeups, which of course can put you in a much better position to enjoy an eventual recovery. Let’s continue to stay focused on the big picture.

If you’re having a hard time staying cool, maybe it’s time to talk. Now might be the time to reassess your financial strategies and risk tolerance. We’d be happy to chat about whether or not you should possibly switch gears!

Graph Source: https://www.linkedin.com/posts/brianferoldi_15-timeless-investing-principles-visualized-activity-6958398163829334016-UWNz

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