Thought Leadership on Corporate Financial Wellness presented by Raskin Gobal.
The new year is upon us, and it’s starting out with the usual investment volatility. But why is the current downturn happening? China, oil prices, Obama, Trump? The fact is, no one knows. Like many investors, you might be starting to panic, or at the least feel a bit nervous about your investments. Instead, consider the following information about how to invest.
The current environment can best be called a buy cycle.
What is a buy cycle? As the global markets decline in value, the underlying stock prices become very lucrative for prudent investors. This allows them to buy the stocks when they are undervalued, in preparation for the following increase in prices during the sell cycle. This is when profits are captured from the portfolio by enjoying the upswing in stock prices and using systematic portfolio rebalancing techniques. It’s just one of the benefits of following an evidence-based, academically sound investment philosophy.
Ask yourself the following question: When you are on an airplane and you experience severe turbulence, what is your first reaction — to start pounding on the cockpit door, to jump out of the plane, or to grin and bear it because you know in your heart you’ll fly through the turbulence and arrive at your destination safely? While it’s sometimes difficult to feel calm and peaceful during a turbulent flight, it can be done — in fact, we’ve probably all done it, and we’re still here and talking about it. That’s how it should be with your investing.
With this in mind, here are several points to consider regarding the current market downturn:
- If you are properly invested, do not jump off here!
- If your advisors are giving you a market forecast, fire them!
Downturns always precede the next big upturn. It may be weeks, months or even longer, but if history repeats itself, the upturn will come, and it will be very good news for you as an investor if you stay the course and had a prudent portfolio in the first place.
In short, don’t worry — be happy.
Leonard Raskin is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Raskin Global is not an affiliate or subsidiary of PAS or Guardian. Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. 2016-29413 Exp 10/18