Every
day you start fresh in the stock market. At the start of every day, you know
there is the chance the market can go up and there is the chance that it can go
down. It is never obvious which way it will go because there are always factors
that could push it either way. So every day you start fresh and yesterday no
longer matters. And if you remind yourself that 10 or more years from now your
diversified stock portfolio will likely be much higher because of the effect of
huge annual global corporate profits, you might relax and ignore the day-to-day
volatility. Far too many investors fear the stock market in the short term and
then miss the incredible gains over the long term after they panic and sell
their holdings. If you are invested correctly, your stock holdings should be
the part of your portfolio designed to meet your needs in the long term. If you
are invested correctly, the short-term volatility should be a problem for day
traders but not for you.
(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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