Earlier this month, the US stock market established new all-time highs, as measured by the Dow, S&P 500, and the NASDAQ. While we all have enjoyed the strong investment returns, it would be wise to take a step back and look at the facts. The markets have been, and always will be, cyclical in nature. The current “bull market” is now more than 8 years old. It’s been almost 9 years since the last significant market correction. Perhaps this is a time to be “cautiously optimistic”, to quote Alan Greenspan, the former Federal Reserve Chairman.
How does one make investment decisions in uncertain times like these? I would suggest that most people will use one or more of the following ways to make key financial decisions.
-Listen to the “noise” and clamoring of the financial media
-Operate on emotions – typically either greed or fear
-Copy what others are doing – following the crowd
-Utilize timeless common sense advice, such as “buy low, sell high”
-Seek objective & well-balanced advice from a trusted advisor
-Adhere to timeless principles rooted in Biblical wisdom and truth
I can say with confidence, you would be well-served to avoid the first three means of decision making listed above. Decisions made using that criteria usually don’t end well. In stark contrast, using a good blend of the last three decision-making practices has proven to be very effective over time.
We don’t know how much higher the markets will go, or when to expect the next inevitable market correction. That’s not something we can or will try to predict, but we are committed to giving you objective and well-balanced advice. We will not neglect clear-thinking or common sense, and we will apply the principles rooted in Biblical wisdom. Thank you for the confidence you have placed in us. Working together, we will help you make wise investment decisions as you pursue your financial planning goals.