“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”– Winston Churchill
In uncertain times like these I think it is critically important to remember why we invest. To me, the purpose of investing is taking money we don’t need now and making it grow until the time when we do need it.
My 18 years of experience as a financial advisor tells me that the best time to invest is when you have the cash to do so. Time in the market, not timing the market is the most critical factor for investment success. The almost magical power of compound interest will do most of the hard work for you over time as you grow your money until it’s needed.
Furthermore, uncertainty breeds opportunity. We need to retrain ourselves to view periods of uncertainty as additional opportunities to invest. As a consumer-focused economy, we can all appreciate a good sale. We have all been conditioned to buy goods and services when prices are low. (Think Black Friday deals at Walmart!). However, when it comes to stock prices our reaction is the opposite. We actually fear sale prices and consider selling! In falling markets, I see myself as a Walmart shopper stampeding through the entrance to take advantage of all the deals! I would encourage you to do the same by thinking opportunistically about falling stock prices. They are a buying opportunity for the long-term investor: buy low!
Please do not hesitate to email or call me with specific questions pertaining to your investment plan and long-term goals.
Stay safe and healthy.
Sincerely,