Stocks Off to the Worst Start in 90 Years
22 Jan 2016
“Stocks are off to the worst start in 90 years & 70% of investors lost money in 2015.”
Other than that everything is great. No seriously. I can’t see the relevancy of reporting information to the public like that. Other than to try to scare people or invoke them into some type of investment philosophy change, assuming they had one. I recently had a caller on our radio show (which is podcasted on www.premierinvestmentsofiowa.com) ask me “What do you think about China?” I said, “Well, in our house, we use paper plates mostly.” Kidding aside, what I really said was, “What does your financial plan think about China?” The answer I got was the answer I expected. “What financial plan?”
The truth is, if you don’t have a financial plan, then what is happening right now in China does become relevant to you. If you have a plan that considers both good and bad markets and you have calculated your “probability of success”, then, at worst, you will have a heightened sense of financial confidence as we navigate through another distraction to your long term goals.
I am not down playing the importance, at least in the short term, of what is happening in China, the Ebola scare, or the interest rate hike. However, the reality is that most of these concerns have little impact long term. As we head into yet another volatile year, (name me one that wasn’t) I urge you to reflect back to your own financial plan. If you don’t have one, go get one. My belief is that in doing so you will become better at learning to focus on what’s important and tuning out the day-to-day, minute-by-minute analysis of the economy and the markets. At the end of the day, there is much more to life than money, right?? I sure hope so.