KEEP CALM and stay in the market

Remember, stupid is as stupid does…

With the U.S. equity markets at or near all-time highs, we are beginning to hear a number of warnings about an impending  market event.  That “event ” is an equity market swift and severe sell off.  There are always a number of fear mongers in the market who consistently beat the crash drum.  The fact of the matter is that if you remained out of the market for the past five years, you likely qualify for a cameo on the “Biggest Loser”.  To quote Forrest Gump,”stupid is as stupid does”.

Market timing is a really difficult thing to get right which is why we at Compass Financial Strategies do not believe in that myth.  Many of the smartest have tried  and  died.  The fact is that wealth is built over time using time-tested techniques separating fear from your money.  Markets go up and down based on greed and fear.  Warren Buffett tells us that the best time to invest is when there is “blood in the streets.”

Buying low and selling high is absolutely key to successful investing and the most important ingredient is  TIME.

A time-tested technique for wealth creation is to manage your exposure to all asset classes using asset allocation methods with  periodic rebalancing discipline.

The bottom-line: deny your portfolio the pleasure of your emotional swings.  Is it prudent to pare your exposure to fully priced markets and increase exposure when markets dip?  History shows us that investors who jump in and out of the market likely will fail and cause their wealth creation plan to ultimately fail.  This is our story -Compass Financial Strategies to successful investing be a passive investor, let the markets work for you, stay disciplined and diversified.