Investor Fatigue? You’re not alone
May 07, 2012
Filed under: Market News
After almost 4 years of recovering from the financial crisis of 2008, a lot of us are suffering from investor fatigue. Even advisors are struggling with new ways to encourage clients to "hang in there".
It's not much wonder we're suffering investor fatigue. Four years of patience is one thing but the ongoing negativity of the media makes it feel even longer and more hopeless. Worst of all, some columnists seem to be be seducing even the most disciplined investors away from proven financial strategies with their unfounded alternatives.
And the financial world is obsessed with trying to predict the future. Columnists with doomsday predictions are often horribly inaccurate. They bask in fleeting attention and nobody holds them accountable when they are wrong.
A while back, there was an article entitled "Long term investing is dead" which, of course, is ridiculous. In fact, long term investing is far from dead - it's the only type of investing there is. If you have a short time frame, you can be a saver or else you're a speculator - but you're not an investor.
These articles come out during every tough market. BusinessWeek ran an article titled "The Death of Equities" and the conclusion was "the old attitude of buying solid stocks as a cornerstone for one's life savings and retirement has simply disappeared."
That article was written in 1979 - at the inception of the greatest bull market in history.
We need to accept that the future is unpredictable and focus on working together to make smart decisions consistent with financial objectives. If we do that and stay discplined to our plans, what happens in the next 5 minutes becomes immaterial.
Let's stick with what we know - stock markets go up over the long term. We just need to be patient with the ups and downs of the short term . Beyond that, anyone who pretends to accurately forecast the future is just speculating.
For personal advice that addresses both your retirement plan, debt reduction and protecting your family, call Dan Allen at 519-822-3887.
Dan Allen CFP, MFA, EPC is a Certified Financial Planner who has achieved his Elder Planning Counselor accreditation and his Master Financial Advisor designation specializing in retirement income planning
Insurance products and services are offered through Manulife Securities Insurance Agency licensed life insurance agency and affiliate of Manulife Securities) by Manulife Securities Advisors licensed as life agents.
