Timing the market…

vancouver tax planning

Timing the market…

In today’s day in age we are continuously connected to the internet and are able to receive live updates from events happening all around the globe at a moment’s notice. The continuous negative headlines that we are exposed to can make us all have serious doubts about what tomorrow might bring. This table does a great job of demonstrating that through it all, stock markets still tend to continue to grow in the long-term. This table below shows how the Dow Jones Industrial Average (DJIA) has grown over the years despite war, political assassinations, and financial scandal and crisis. All of the events that make markets move are out of any one individual’s control, and are entirely unpredictable. As we are apt to remind all of our clients, we cannot time the market – no one can. What we do have control over is the asset allocation of our portfolios. Asset allocation is the mix between equities, fixed income, and cash within your portfolio. Complimenting equity investments with the appropriate amount of fixed income and cash is the best way to ensure long-term investment success – especially in retirement when you need to draw an income from your portfolio. Given enough time, investing in high quality companies will provide quality growth. The next time you read another bleak headline that causes you to doubt if now is the right time to invest, remind yourself that time in the market and not timing the market is what will make you a successful investor.

I Don't Want to Invest My Money Now Because.._

If you have any questions or comments please be sure to contact Harry or David.