BUY! No…SELL! No wait, BUY!
That’s the message you may get if you watch the business channels long
enough. Well-respected analyst Jim
Paulsen was recently on CNBC saying the market is significantly overvalued and
may fall 15%. Yet, Ed Yardeni, who is
equally highly regarded, believes the market will be 9% higher by year
end. These statements were in two
different articles side-by-side on CNBC.com.
Who will be right? Time will tell.
But a proper investment plan doesn’t bet on where the market is going in
the next months. I know too many
investors who believed the doom and gloom story and missed the last couple of
years of huge investment returns. Maybe
Paulsen will be right about a correction and they’ll get another chance to buy
low. But they’re missing the point. It’s not about where the market will be a
year from now; it’s about where it will be in 10 years or 20 years or whenever
it is that you are retiring. Waiting for
a crash that puts stocks below 2016 levels may keep you on the sidelines for
the rest of your life. If you believe
the market will be higher in 2028 then worry less about 2018 and turn off those
business channels! Instead, consult an
hourly, fee-based advisor who can help you reach your goals.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com
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