The stock market goes through rough stretches.
And those rough stretches might leave your portfolio looking a bit haggard. But that’s no reason to abandon a carefully chosen investing plan.
Before you give up on your investment strategy, consider some of the consequences.
Smells like market timing
A market downturn can be scary. You may think dumping your stock investments when prices start to drop is a smart move. But how will you know exactly when it’s the right time to jump back into buying stocks?
Even experts have a hard time predicting stock price movements and events, such as market highs or lows. And being out of the market at the beginning of an upswing can significantly affect your portfolio’s long-term performance.
Changing your strategy every time the market makes a significant move up or down really means you have no strategy at all.
Instead of chasing performance, you should consider deciding how much risk you’re comfortable with and allocate your investment dollars accordingly.
Investing decisions should be made rationally. But all too often, investors let their emotions make their choices for them.
If you find yourself completely pulling out of stocks whenever the market drops and then throwing everything back into stocks when the market begins to improve, you’re probably following your emotions – not an investment strategy.
Take emotion out of the mix by choosing an asset allocation based on your long-term goals and comfort level and sticking with it. Instead of acting rashly when the markets are in turmoil, select investments you can live with through the ups and downs.
An easier way
The Journey Series of investment management from COUNTRY Financial can help you stop worrying about market timing or letting emotions get in the way of your investment strategy.
Call me today so we can help you determine an asset allocation that’s right for you.
It’s just one of the ways I can help you achieve financial security, no matter where you’re starting from.
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Investment management, retirement, trust and planning services provided by COUNTRY Trust Bank®.
Securities products are offered through COUNTRY® Capital Management Company, 1705 N Towanda Avenue, P.O. Box 2222, Bloomington, IL 61702-2222, tel (866) 551-0060. Member FINRA/SIPC.