| Dow New Highs - What NOT To Do |
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Three Things NOT to do now that the DOW is at a an all-time high!
- Do not succumb to the "Fear of a Missed Opportunity" in the stock market. Only 4 years ago, investors were selling stocks because of the "Fear of Loss". Making investment decisions as an emotional response almost always has you doing the wrong thing at the wrong time. You are best served to have an objective investement plan that is designed to participate in retruns during the good times and weather the storms during the bad times.
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Do not abandon bonds in favor of stocks. There is fear that rising interest rates will make bonds losers in the future. Bonds and bond funds with longer maturities pose the bigger risk so target shorter maturities but when the next bear market for stocks comes, you will be happy that you still own some bonds. - Do not get excited by all-time new highs in the Dow. A simple diversified portfolio of 60% stocks and 40% bonds reached an all-time new high over two years ago. And is currently trading 15% above the previous all-time high.
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Thank you for the opportunity to be of service.
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