I’m Sorry, But My Long-Term Goals Will Just Have To Wait – Forbes
As markets reach higher highs and the frequency of articles espousing the “end is near” is increasing. There must be a corollary somewhere. Although, during the depths of the recession, I don’t recall seeing too many reporters urging investors to put their cash into the market. It’s kinda funny-but kinda not. The name of the game is to ratchet up the anxiety level wherever possible, and disguise it as news consumers should follow.
The fact is, the market could hit a snag at any time and we could watch the run up of the last several months disappear. However, it bears noting that real investing is not market timing! I wonder how many reporters are timing their 401(k) accounts, moving money in-out-back and forth based on the articles they are writing? I am hearing all too frequently, comments about the market being too high to invest. But if put in proper perspective, what is TOO high? Regardless of down markets and recessions, the markets have never failed to regain their losses and hit higher ground.
Let us look at some basics:
1. All markets (stock, bond, interest rate, foreign, domestic, etc) go up and down. You remember the old saying, “The tree does not grow up to the sky.” In other words, nothing just goes up forever to infinity; not even NYC real estate (oops, did I just say that?).
via I’m Sorry, But My Long-Term Goals Will Just Have To Wait – Forbes.