It always seems inevitable that when markets move enough to be back in the headlines, that I start to get a lot of questions about “Is this the time to…?” As human beings, we are wired to think we can control the uncontrollable, so we start to look for ways to do it.
I’m a fan of “It’s always the time to”. So in life, don’t hesitate. Live it. We don’t know what tomorrow brings. As for investments, it’s always time to have that plan you know you need. If your plan calls for you to be invested, then it’s time to be invested. If part of your plan requires liquidity, that’s where you should be. History tells us, a rising or falling market predicts nothing of what is to come. Sure, there are ups and down – but if anybody really knew when they were coming, with certainty, our markets could not provide the long term returns that they have. It’s the unknown (or risk as we call it) that gives us the return. If you don’t want to lose any money in the near term, then don’t commit that money to risk. If you haven’t thought about or updated your plan recently it may be time to contact us at 805-962-7725 or send an email to: firstname.lastname@example.org for a complimentary 360O review of your financial affairs.
I’ve included a link (below) to a very interesting commentary written by a colleague of mine at DFA (one of my primary investment partners). Read it. Even those known to be the “best” aren’t when you look at the results.