A classic mistake investors make:
Waiting to invest until “after the impeachment”
or until “after the tariffs are put in place.”
I regularly hear investors express their view that these items must be
bad for stock prices in the days following these events so it is best to wait until
after they occur.
The problem with this
logic is that if you know it is coming, then so does everyone else and the risk
may already be priced into stock values.
Today the market is trading up despite the impeachment last night.
In fact, despite the impeachment that has
been expected for quite some time, large-company stocks are up over 6% in the
last 3 months.
One never knows which
days or months the stock market will rise or fall but many of the assumptions
people make about the forces impacting stock prices are flawed.
The best chance for making money in stocks is
to buy and hold for decades and add regularly with each new paycheck.
Waiting out short-term events can be costly
in the long run.
(Past performance may
not be an indicator of what to expect in the future and your individual
circumstances should be considered in any investment choice.)
Larry Pike, CFA
Client Priority Financial Advisors LLC
www.clientpriority.com
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