Markets are often messy and can test our patience. If we are clear on our reasons for investing in the first instance, however, then we can turn periods of distress into times of opportunity.

We start with the belief that short term market movements can't be reliably predicted. There isn't a black box or wizard that can tell us when to get out of the market (and when to return) despite all of our wanting that to be so. We recognize, however, that most of what is written and spoken each day by the media and the "talking heads" is premised on that false notion- that the unpredictable is actually predictable.

When the inevitable rough market periods arrive, the level of fear and anxiety start to build towards a crescendo. We are humans and we can't totally suppress our hardwired emotions, BUT we can avoid acting on them. If our long term goals are poorly defined, it is easy to fall into the "what is the market going to do "trap.

If we give in to dread and let that dictate our investment policy, then we have likely sacrificed some portion of our long term financial future. Dread often leads to capitulation which is characterized by fleeing the market. That virtually assures, mathematically, a poorer future since it is impossible to protect purchasing power when returns are less than inflation plus taxes.

None of us should be "scared" by the latest data point or short term trend. A few days or even a few weeks of data have no greater weight than the months and years that went before. The only possible thing that might be different is our emotion.

Our goal is to help change the way you think about investing. We put these good ideas to work every day. We welcome your referrals and are happy to visit with those you think could benefit from a second opinion from us.