- “The four most dangerous words in investing are: ‘This time it’s different.’”- Sir John Templeton
How easy is to see the current situation we’re living in and think “all the lessons I’ve learned about investing just simply do not apply anymore in this new normal we’re in?” The reality is every situation is new – World War, hyperinflation, terrorist attacks, global financial crisis – and now a global health pandemic. However, the world has always adapted and moved forward. Given the weighty evidence of history, the only rational way to invest for the long-term is to be optimistic.
- "The passage of time leaches the risk out of stocks." - Nick Murray
Many view stocks as a risky bet and it’s hard to blame them when looking at returns over a week, month, or year. However, as your time-horizon lengthens the risk in stocks has historically fallen significantly. There is good reason to be concerned if you’re investing the money you need in a year. There is less reason if you don’t need it for a decade or longer.
- “We continue to make more money when snoring than when active" - Warren Buffett
The stock market is often out of synch with news, economy, politics…the list goes on. It is very near impossible to accurately and consistently predict what will happen in the stock market. Because of that, you should focus on setting up an investment plan that meets your goals and then leave it alone. Over time, you’ll be much better for it.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized investment, tax or legal advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. The views, thoughts, and opinions expressed in this blog belong solely to Alex Voorhees, and not necessarily to Reston Wealth Management. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss. You should consider the investment objectives, risks, charges and expenses of any investment carefully before investing. You cannot invest directly in an index.