Market risk is a fact of life, and the market’s periodic ups and downs are something we can’t control. But market risk is deliberately built into your portfolio because with it comes the potential for reward. This is why, as tempting as it may be to follow the herd by trading on bad (or good) news, we must stay the course. Consider that:
1. By the time you’re aware of good or bad news, the rest of the market knows it too, and already has incorporated it into existing prices.
2. It’s unexpected news that alters future pricing, and by definition, the unexpected is impossible to predict.
3. Any trades, whether they work or not, cost real money.
Rather than try to play an expensive game based on information over which we have little control, we continue to recommend that you focus on what can be controlled:
1. Minimizing costs.
2. Forming an investment plan to guide you to your goals—and sticking with that plan.
3. Positioning your investments to participate in long-term market growth.
4. Maintaining diversified holdings to dampen market risks.
Our clients have heard this message before, but it bears repeating whenever the market is roiled by emotion: Stick with your long-range investment approach—or, if your personal goals have changed, work with us to thoughtfully adjust your approach. As always, if you’d like to review your investments, please don’t hesitate to contact us.
– Brian Puckett
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Brian Puckett | JD, CPA, PFS, CFP®
13921 Quail Pointe Drive | Oklahoma City, OK 73134
T: 405.607.4820 | F: 405.294.3340
125 5th St. S. Suite 201 | St. Petersburg, FL 33701
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