A client came in my office the other day and indicated that he was moving all his money out of the market.
“I’m sitting on the sidelines for now”, he said. “I’m just not comfortable with…” and then he went on to explain his position.
Just as markets can move in extremes one way or another, so too can investors.
When I see the various gyrations that the market takes from time to time, I like to remind myself and my clients of some basic investment strategies.
- Review your financial goals – have they changed from the last time that you looked at your financial plan? Has your time horizon changed? How about your risk tolerance? Take time to plan for your future and once the plan is put into place, stay the course unless your objectives have changed.
- Keep a long-term perspective
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