The question of whether to purchase investments when the market is at new highs can appear to be difficult. Only after examining the facts and implementing a sound strategy can this decision be made. The facts remain that if you invested at the absolute high of the market, your returns are still healthy over a ten-year period, suggesting that there is no bad time to start investing. Implementing the strategy, however, is by far the most crucial component of sound investing.
For example, you have excess cash in the bank and need your assets to grow more than what you would earn in a savings account in order to support your lifestyle. Let’s examine if you were investing in the stock market at the absolute worst possible time, for instance, right before the 2008 housing crash. We can also look at a longer time period, the technology bubble of 2001. By investing in the Dow Jones Industrial Average just before the fall in the market of 2001, you would have a compounded rate of return of more than 6.93% today with dividends reinvested. The investment would include the drop in 2001 and 2008, not a bad return for bad timing. Looking at the week before the market fell in 2008 and investing in the Dow Jones would have produced about 7.53% through July 31st, 2017. Both of these returns are significant and in line with the expected return of equities over long periods of time.
Creating a sound strategy is complex as we need to review your goals and objectives. People always say “I want to make money and not lose any.” Well, welcome to the club! What Fogel Capital Management can do is develop a personalized strategy that weathers the storm. How do we accomplish this task? First, we look at the income you need to support your expenses. We generate income by using extremely predictable and tax efficient securities, as we build a portfolio of investments that are bulletproof from market corrections. By adding investments inside and outside the U.S., the portfolio can grow in various market conditions. By diversifying, the portfolio can chug away turning out dividends and growth. When the market is happy and moving higher, your portfolio shines away. When the market is sad and moving down, your dividends and income support the investment process allowing you to sleep at night, not worrying about your investments.
Through our examination of investing at the absolute peak of a market, we find that returns are still superior when planning a strong strategy that lets you stay invested for long periods. By utilizing Fogel Capital Management, Inc. I will personally build a strategy that executes an investment portfolio that will weather the storms ahead and protect you for the future. Investing is fun and rewarding when executed property. If you would like to discuss this article further, feel free to call me at (772) 223-9686 or email to Michael@FogelCapital.com