DON’T TRY TO TIME THE MARKET
Individual Investors’ Advantage over Professional Investors
- Don’t have to worry about quarterly performance or beating a benchmark
- For professional investors timing can be everything and getting it wrong can be devastating
SPEND SOME TIME & CAREFULLY THINK ABOUT WHO YOU ARE & WHAT YOUR REALITY IS
- What is your reality?
- What are you trying to do for yourself and your family?
- What’s your savings plan?
- How long is your investment horizon?
- Can you handle market fluctuations without freaking out?
HOLD SOME SAFE HAVEN ASSETS-CASH, U.S. TREASURY BONDS, GOLD, OR ALL THREE
SAFE HAVEN INVESTMENTS
- An insurance policy against disaster and traditionally a behavioral opposite to stocks
- Morningstar Favorite:
iShares Gold Trust ETF (IAU)
Long Term Treasuries:
- Non-correlated asset
- Dampens portfolio volatility
- A top rated ETF is:
SPDR Barclays Long Term Treasury ETF (TLO)
ACCEPT THE FACT THAT THE MARKETS WILL FLUCTUATE
- Avoid trying to time the market
- Stick with your financial game plan
- Stick with investment discipline that works for you financially & emotionally
- Take advantage of “Mr. Market’s” mood swings
- Buy some stocks when cheap & sell some stocks when high