|
 |
Diversify, take a long view and don't waver.
- John Bogle (author, founder of Vanguard)
|
|
|
Choices, Trade-offs, and Consequences
Bloomberg recently conducted an investor study which found that 73% of respondents had missed the 70%+ increase in the S&P 500 Index over the past 13 months. Meaning, of course...they were out of the market.
Making choices necessitates the tradeoff between being in or out of the stock market...and missing a big market move either higher or lower. Indeed, our choices do have consequences.
Investment attitudes should not dominate investment capacity, which necessarily includes the savings/returns needed to accomplish goals. It is likely that some of our goals bear little relationship to the resources available. This is the essential overlay of the entire choices/tradeoffs conundrum.
As financial planners, we work within the realm of our client's whole lives. We are not so much concerned with the short or intermediate term because these timeframes are noisy and cannot be reliably predicted. Rather, we believe that lifetime investment returns are mostly the result of overall asset allocation and behavior-staying in or getting out.
- James E. Wilson, CFP® My Blog
 James Wilson recently co-authored a white paper that focuses on investor behavior. The introduction to Barriers to Financial Security: Important Lessons is available here. This publication is divided into six chapters which will follow in upcoming issues of STAT. |
|
|
|
WealthRx® is J.E. Wilson's unique wealth management process, designed with successful physicians in mind. Learn more. Contact 
