What a Difference a Year Makes!
It’s hard to believe that just over a year ago we were entering into our first lockdowns and the markets were plunging at historic speed. Today, there are 7 effective, globally approved vaccines for COVID-19 and more than 590 million doses have been administered around the world (https://www.bloomberg.com/graphics/covid-vaccine-tracker-global-distribution/). In March of last year, fears were running high that the economy would be damaged beyond repair. However, as in the past, human ingenuity and the resilience of capitalism proved no match for another global crisis. The reward for patient investors over the past 12 months has been no less than remarkable!
As fiduciaries, all of us at DecisionPoint work hard to provide each of you with pure and conflict free investment advice. If you are properly invested for your given investment time horizon, you should never have to fear over what the markets are doing in the short term, and you should have confidence that the markets will reward you over the long term!
Financial Planning Sketch Art - You and The Big Mistake
At some point, all investors face “The Big Mistake.” Examples of The Big Mistake can be over concentrating in a particular investment, chasing investment returns, and buying high and selling low (i.e., attempting to time the market). Our propensity to time the market is only natural. When the market drops, our instinct is to sell now and stop the pain. When the market shoots up, we tell ourselves it's time to buy, buy, buy. However, our odds of avoiding The Big Mistake go up dramatically when we have a good advisor who can help us separate our emotions from our investment decisions. The next time you are feeling emotional anxiety over your investments, pick up the phone and call us so that we can prevent you from making investment decisions that can jeopardize your long term financial goals.
As always, please reach out if we can be of assistance!
- Your DecisionPoint Financial Planning Team -