June 2, 2018
Kathleen T Owens, Financial Adviser, Fiduciary
Don’t Abandon a Long-Term Investment Plan
For the past nine years, the broad U.S. equity market has advanced by roughly 300%. Many investors, procrastinated and did not have their money invested fully, or at all during this time period. Some fear that this “Bull Market” cycle is coming to an end, and thus may abandon a long-term investment plan. While no one can predict if the bull market is coming to an end, economic conditions signal that it is not too late to invest fully for the long-term.
• The global economy is still relatively strong and the U.S. still has a significant amount of fiscal stimulus coming in the second half of the year.
• Even if we are in the last years of the secular bull market, markets tend to do well in the last 24-36 months of the cycle anyway.
Investors with a long-term time horizon, should pay little attention to the cyclicality of markets. An important strategy is to automate your investing and direct a portion of every paycheck to an investment account. Pay yourself first, before you can spend the money. Put the money out of sight, and thus, out of mind to take the emotion out of investing. If stocks go down, simply buy more of them at cheaper price. It’s a simple concept, but far few people do it.
The graph below illustrates the successful practice of investing frequently and consistently.