Investing Secrets: Key Concepts Every Investor Should Know

Posted by:

You may have noticed that the stock market has experienced a few difficult days recently and volatility has picked up considerably.  After yesterday’s close, the S&P is now at the same price it was at the end of November.  But also know that it is still up over 12% in the last 12 months (and up 72% over the last 5 years!).

We know times like these can be stressful, so we always try to let you know our current thinking.

First, for those of you who are not a client of ours, I’m going to let you behind the curtain and let you know what we are doing in our portfolios. Get you pencil ready. We are doing…

Nothing. We are not worried. We are not concerned. We are not scared. There is nothing to do. This is normal and expected.

Second, some reminders…

  • For those who are ‘savers’ (aka accumulation investors): While it may not feel like it, this is welcome news. As you continue to save, you are now able to buy things at a cheaper price.
  • For those who are withdrawing from their portfolios: You shouldn’t be worried. If you planned properly, you should have a plan that guides you through how to handle times like these.  At Concentus, we design Wealth Policy Statements for clients specifically to be able to handle these types of markets. Remember, great investors work from a plan.  If you don’t have a plan, we can help. Just contact us at: HelpIDontHaveaPlan@concentuswealth.com

Lastly, we wanted to share something we recently saw via @ateachmoment that we thought was great…some simple investing facts that every investor should know:

         A Market Crash on an Index Card

  1. Markets average one -14% annual decline.
  2. Daily dips of 2% or more occur about 5x a year.
  3. Every 5 years or so markets decline 30%+.
  4. Markets have positive years 71% of the time.
  5. Over long periods, markets significantly beat inflation.
  6. Selling low and buying high NEVER works.
  7. Turn of the TV and don’t check your account.
  8. Never make important decisions based on emotion.
  9. This time is not different. It is never different. Just different versions of the same.*

                                                                                           * Note: #9 added by Concentus.

Keep these rules somewhere close by and refer to them when you don’t know what to do next.

0

About the Author:

Paul is the co-founder of Concentus Wealth Advisors and currently serves as the Chief Operating officer of the firm. After graduating with his Finance degree from Georgetown in 1997, Paul spent three years working for Credit Suisse First Boston in New York on their institutional sales desk and then as Director of Global Equities Information Technology. Paul continues to use his technology expertise to bring cutting edge resources to the Firm and their clients. He currently resides in Berwyn, PA with his wife and four children.

Leave a Reply

%d bloggers like this: