DOW 14,000!!!
What is the importance of DOW 14,000? Nothing, it's just a number.
It is important to the media - it makes a great headline as they bombard you with more advertising.
The Dow is just 30 large stocks - it's not representative of the US market not to mention the world markets. Unless your portfolio is the same 30 stocks in the same proportions - it does not indicate how your portfolio is doing.
The Dow and market moves in general are out of our control. We would be far better off to focus on numbers and behaviors we can control like budgets, saving, having a financial plan in place, having estate planning in place/updated, making sure our insurance coverage match our situation - you get the picture. Of course, unless you have the credentials and experience, you will need help to accomplish these tasks correctly.
So keep to your plan and what you can control. Ignore the hype of Dow, 14,000, 13,000, 15,000 or whatever other number comes along.
The well-known Serenity Prayer credited to American theologian Reinhold Niebuhr fits these ideas perfectly:
God, grant me the serenity to accept the things I cannot change,
The courage to change the things I can,
And wisdom to know the difference.
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What to Do Next
The most important first step is to understand what is most important to you and establish goals in alignment. Then choose someone that can bring a team of independent experts together and assemble the advice (prioritized in your best interests) to make it happen. That said, it is completely appropriate to choose investing as the first topic. We regularly analyze folk's current investment strategy with nothing expected in return. (We'll analyze other aspects of your strategy if you wish.) We look at: - Overall Performance (vs. benchmarks & our model portfolios)
- Portfolio Design
- Diversification
- Fees & Expenses
Give us a call. 760-804-0910 |
