Putting December Volatility in PerspectiveSubmitted by O'Grady Financial Group on December 18th, 2018
So you want to know what happened last week, or the week before. Or maybe not. Does what happened on Wall Street last week or last month have any bearing on your lifelong investing career. I maintain, not likely.
We knew when we became investors that the market is not a one way street. That sometimes it makes a temporary u-turn before turning around again and resuming course. Though completely normal, we just never know the timing of those turns. So it’s often jarring when they happen. And we’ve been getting a lot of jar lately.
Put time in perspective. Most of us only remember the very recent past, especially it seems, when it comes to investment performance.
Don’t fall for pop culture and financial journalism’s investing time horizon of 62, 65, or 66…and then game over. That you’re supposed to retire and suddenly get conservative with your money. Or rules of thumb that encourage protecting principal just because you hit a certain age.
Come on, you’re not on culture’s timeline, you’re on God’s timeline. No one knows their last day on earth, but it’s not inconceivable that you’re going to 100 or beyond. So your investing time horizon isn’t just to retirement, but through retirement.
The point is, making life long investment decisions based on what happened last week, last month, last quarter, or even last year…well, to me that’s like driving by looking in the rear view mirror.
Turn it off…all the media…TV, newspapers, social media. Give it a rest. Put it on Christmas hiatus. At least 99-percent of the news is stuff we have no control over anyway. So why get all worked up over things you can’t control. And most of it has no impact on your day to day life anyway.
It doesn’t matter what’s happening in Hollywood. It’s your script that matters. Rewrite it if necessary.
It doesn’t matter what’s happening on Wall St. What matters is what’s happening on your street.
It doesn’t matter what’s going on in the White House…what matters is what’s going on in your house.
Volatility. It’s not different this time. This too shall pass. Merry Christmas.