Investing is long-term so don't worry so much about the bottom line. Yearly reviews should not be a conversation about % gain/loss in your portfolio they should be about strategy, your goals, and the plan you agreed on.
Switching your strategy constantly is like putting a quarter in a slot machine that doesn't hit and then moving down the row of slot machines doing the same thing. Your best bet is to stick to one strategy or asset allocation that you believe in and reevaluate over time if you feel you are off track.
The market is unpredictable but the worst thing you can do is try to time it. Advisor's will tell you to leave your money in the market because even if the market goes down you've hopefully invested in high yielding products and are still collecting dividend and capital gains distributions which will allow you to reinvest more money in downturns.
In downturns wouldn't you want to buy more when the securities you like are cheaper and then see even greater gains when the market turns around (provided the fundamentals on these haven't changed).
2012 and so far 2013 have been great examples of why you should leave your money in just check what percentage the Dow or really the S&P 500 are up now and what they were in 2012. Quiet rallies will make a huge difference to those portfolio's that stay invested, especially when all the talking heads and doom and gloom experts tell you to get out when they have no idea what will happen like everyone else
There are a lot of great people out there who want to help you so let them. Don't take a back seat but, limit the ways you can sabotage yourself and your gains.
There is a lot on this subject but I will post more later.
Switching your strategy constantly is like putting a quarter in a slot machine that doesn't hit and then moving down the row of slot machines doing the same thing. Your best bet is to stick to one strategy or asset allocation that you believe in and reevaluate over time if you feel you are off track.
The market is unpredictable but the worst thing you can do is try to time it. Advisor's will tell you to leave your money in the market because even if the market goes down you've hopefully invested in high yielding products and are still collecting dividend and capital gains distributions which will allow you to reinvest more money in downturns.
In downturns wouldn't you want to buy more when the securities you like are cheaper and then see even greater gains when the market turns around (provided the fundamentals on these haven't changed).
2012 and so far 2013 have been great examples of why you should leave your money in just check what percentage the Dow or really the S&P 500 are up now and what they were in 2012. Quiet rallies will make a huge difference to those portfolio's that stay invested, especially when all the talking heads and doom and gloom experts tell you to get out when they have no idea what will happen like everyone else
There are a lot of great people out there who want to help you so let them. Don't take a back seat but, limit the ways you can sabotage yourself and your gains.
There is a lot on this subject but I will post more later.
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