I am fairly certain there are many people who have missed the latest move up in the stock market. Election uncertainty drove many investors to the sidelines in fear of some type of market collapse. Well here we are three months later and the market continues upward. The S&P 500 is up over 11 percent since the day before the election. That is a large move for the stock market, and it makes one think that we have to be due for some type of correction or pullback at least in the short term. However, just because a pullback or correction might be due here does not mean it’s going to happen. In fact, it might not happen anytime soon. This market could move another 10 percent up before any type of significant pullback. This goes back to the old saying “you can’t time the market”.
Investing in the stock market can be a very unnerving experience. Unlike Real Estate, if you own a stock you know exactly what its worth on any given day. If you got statements on what your home was worth during the financial crisis, it would have probably caused you to not only lose sleep but also to make a poor investment decision. This happens in the stock market on a daily basis, because after all money makes people very emotional. If you missed the market move since the election, I am here to tell you that it’s not too late to invest.
If you are thinking of investing in stocks now, you should devise a strategy. I would not advise getting 100 percent invested at this time. I would tell you to make a list of the companies you want to own and have a strategy to invest in those companies over the next six months to a year. At these levels, dollar cost averaging into the market makes more sense than sitting on the sidelines watching the market go up, and it makes more sense than putting all your money to work at all-time highs with a good chance of a pullback or correction in the near future.
If you have read any of my other articles, you know I preach about having a strategy and being disciplined enough to stick with it through the good times and the bad. Investing is not always easy. There will be some bumps in the road along the way. But what I have learned over the last 21 years of helping others invest their money, is that owning good companies over a long period of time is the best way to reach your financial goals. I also believe that having a good Financial Advisor will help you achieve those goals by helping take the emotion out of the investment decisions.
Please call me at 772-266-3431 or email Jay@FogelCapital.com if you have any questions on your current portfolio or would like a free financial review. I am a Certified Financial Planner™ with over 20 years of experience and have dealt with many complex financial situations.