Our clients get market outlook emails every few months, and it’s because context is important. If you understand WHY an investment is declining, you feel more confident about weathering a temporary storm.
My planners and I were discussing this the other day, and I asked them, what do you wish people understood better about the stock market?
Here’s what they said:
Joann Nieciecki:
“You don’t need a finance degree to succeed as an investor. Complex portfolios, much like meticulously tended gardens, aren’t inherently better than simpler ones; they just demand more time and effort to manage. If you enjoy the process, that’s fantastic! However, for those who don’t, think of native gardens with larger groupings of low-maintenance plants—equally beautiful and less demanding. Similarly, too many investments can be overwhelming. Keep it simple by focusing on a manageable number of diversified funds and investing consistently for long-term wealth accumulation.”
Sam Kirby:
“That it takes time to see results, and checking in daily or weekly leads to a lot of unnecessary stress and anxiety. If you have well-diversified and appropriate passive investments, you shouldn’t be checking in on them super frequently. The stock market will inherently have fluctuations – and the downward swings can be wildly uncomfortable. They are expected, however, and part of a normal market cycle. Patience is key!”
There you have it. Is understanding the market and the economy a priority this year? Then I recommend you chat with us sooner than later… you can find out more about that here.