DIP IN YOUR BIG TOE
June 1, 2018 | View PDF
What is the market going to do? I don’t know. You don’t know. You can’t find anyone who does know exactly what the market is going to do. That’s why it is called speculation. And it is exactly why so many people choose not to invest. They are risk averse and can’t find the perfect time to enter the market. They have seen the stories of investors who have lost thousands or hundreds of thousands and have vowed to never be in that position. They have seen other investors who have timed the market just right and walked away with huge returns. It can be paralyzing.
To some, it is a big rush to invest their money and then wait in anticipation to see if they are going to reap big rewards or suffer large losses. Then you have those who are waiting for the perfect time to enter the market. They spend hours researching only to be more confused than they were before. Just when they think they have it figured out, a major event occurs and nullifies all of their research. We are now seeing record highs in the markets and some believe that tax reform will get passed and the market will continue to grow. Others, feel like the market is very over-valued and that we are due for a correction. You may have heard the saying, “If you are waiting until you have enough money to have a child, then you will never have a child.” The same holds true here. If you are waiting for the perfect time to enter the market, you never will. That’s why it is important to sit down with an
advisor and have a candid conversation about your financial situation and what your fears and expectations of the market are. Then your advisor can help you to figure out the best way for you to enter the market. They can help you determine your risk tolerance and your time horizon for your money. You’ll learn that there are many different ways that you can enter the market. Once you and your advisor determine what your risk tolerance and time horizon is, then they can help you craft a strategy that is geared towards achieving your personal goals. Now keep in mind that no matter what your strategy is, the market is volatile by nature and can go up or down at any given point in time.
Depending on your risk tolerance, you may only want to dip in your big toe to get started. Then as you get more comfortable with the market you may decide to wade on in about ankle deep. Taking this approach, may be enough to help you see that the market is not as bad as you’ve built it up in your head to be. Or, you may see that it was just enough to show you that you are more of a spectator that a participant in the market. Either way, at this point you have faced your market fears and can move on as a happy investor or happy to be in bank CD’s. Investing in the market can be a lot like having a child. It takes money to do it. There are times when you wonder why you did it. Then there are times when the rewards are so great that you can’t imagine life without it.
If you don’t have a Financial Advisor, please feel free to call me and I’ll be happy to set up a time to talk with you.
Buddy Hicks is a Financial Advisor with Wealth Management Group LLC an affiliate firm of Securian Financial Services and has over 18 years of experience in the financial services business. He is Life and Health Insurance licensed and FINRA registered with his Series 7 and Series 66 which allows him to be an Investment Advisor Representative and Registered Representative of and offer securities and investment advisory services through Securian Financial Services Inc, member FINRA / SIPC. He is an Alumnus of Troy University with a Bachelor’s Degree in Business/Finance. He takes a process approach with all of his clients to help determine their goals and then works with them to put a strategy in place to help reach those goals. An area of importance of Buddy’s is his ability to intuitively listen to his clients so that he can fully understand their current situation and what their future needs might be.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any funds or stocks in particular, nor should it be construed as a recommendation to purchase or sell a security. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 600 South Court Street, Suite 215 Montgomery, AL 36104 Tracking 1898196 DOFU 09/17