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The markets are a perpetually upward trending line punctuated by occasional and temporary downward movements. Prove this by asking them what the value of the S & P 500 was when they married or when first child was born etc. then show them! We aren’t investing for today. We are investing for the rest of your life!
More money has always been lost being out of the market when it goes up then being in it when it goes down.
DCA and look at Morningstar’s info on Behavioral Gaps/Behavioral Science. Time ‘in’ the market vs Time-‘ing’ the market statistics always help as well.
Loved the ICA chart. Still like it. But I randomly stumbled across the Legg Mason Lessons of Time piece and it's ICA on steroids that (especially older) clients and prospective clients can relate to. Google it, download it. I've helped a ton of clients gain valuable perspective just by using that.
What is their timeframe? If it’s more than 10 years, ask the how much 2007 would have an impact on their decision to invest knowing what they know today.
@EdwardJones2. Love that.
The market always has to pass through its last high to get to the next high
You ever look at the ica chart? I show them that and ask them to point to a bad time to invest.
DCA first, then shorter term bonds, CDs
Market had been at new highs since 2012. Have a 38 year old CFA client that has insisted he overweight bonds since 2015. His portfolio has underperformed my portfolio by 1000 bps since then.
"Money never sleeps, Pal” Gordon Gecko
All objective indicators suggest that the market is going higher.
JPMorgan book of the markets, rolling 1,5, 10 returns of a balanced portfolio.
The most important factor leading to the success of the investment is the time of holding. Period.
Highs today are lows 20 years from now.
Just invest #dpab