Bulls, Bears, & Talking Heads
In a world of 24-hour “breaking” financial news, discerning fact from hype can be the difference between unforced losses and methodically building wealth. If you’re in need of some reassurance and perspective, the following simple and proven tips will help you, as Kipling put it, “keep your head when all about you are losing theirs.”
- You’re Smart. Don’t Guess: Legendary investors like Buffett and Bogle don’t try to guess the direction of the market. Why? Because they’re Investors, not Speculators. Nothing causes more investment losses or is more futile than attempting to outwit fickle markets. Great investors are patient investors that understand there are no shortcuts.
- Know Your History: The market never goes up in a straight line. However, history clearly shows upward cycles tend to be far stronger and longer than downward cycles. Knowing this simple truth can provide much needed relief when markets may seem bleak in the short-term.
- Embrace Volatility: Market swings are inevitable. Use price movements to your advantage by regularly investing a fixed amount. You’ll buy more shares when prices are lower and less shares when prices are higher. This technique, known as dollar-cost-averaging, is an automatic way to save and particularly effective during volatile periods.
- Trust Your Fiduciary: Financial news is a business. And hype sells. As a licensed fiduciary, we’re subject to the highest ethical standard: “to act in your best interest at all times.” Since 2000, Blue Marble Investments has proudly served our client’s best economic interests and their broader social and environmental interests as well.
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