What Really Has Changed Post-Election?
23 Nov 2016
So the great election of 2016 has come and gone… Just think we get to do this again in four more years!! There has not been a year I can recall with more investment angst and fear, which has often bordered on panic. So, as calmer heads prevail let’s look at what has NOT changed since we elected our new President.
1) Invest for the long term.
Such a novel concept yet when you live in a ‘fast food’ world it’s hard to do. Have your money segmented into responsibilities such as liquidity, income and growth. Why try to time the market when it’s always been your time IN the market that really matters.
2) Diversify your investments.
Why would you not diversify? Having your investments non-correlated to each other will provide balance and harmony in your investment life. You may not hit the home runs but, home runs are not needed to win the investment game. Boring portfolios can be beautiful!
3) Re-balance regularly.
By doing so, you stay consistent with your overall risk level and you can often use drops in the market as buying opportunities. Again, what a concept….
4) Have a fair rate of return goal.
This goal should be specific to YOUR financial plan. If you don’t have a goal, by default your goal will be to try and beat the market or outperform cousin Eddie’s high flying tech stock portfolio…good luck with that.
5) Breathe deeply and focus on what is really important to you
It’s just money folks. At the end of the day, you really should value your relationships with friends and family more than how high your money can be stacked.
So what have we learned from all this “election stress?” Well, I believe most stress does not exist until it is created by someone else or the media. Learn to tune out distractions and I bet you will have a much more enjoyable experience in the next four years when we do all this over again
Good luck! Jeff
*Diversification does not protect against loss.