On May 3, 2013 at 10:38 a.m., the Dow Jones Industrial Average surged past the 15,000 mark for the first time ever.
Have you had your money sitting on the side lines waiting for the right time to invest? Remember, today’s cheer can quickly turn into tomorrow’s fear. Do not let the news headlines, good or bad, influence your investment decisions.
Once an investment performs well and therefore appears favorable, many investors make their investment. This is one of the reasons why numerous studies show that the typical investor underperforms the market over extended periods of time. Too many times, they invest after much of the increase has been realized. Why is it we like to buy everything else in life on sale, but when it comes to investments, we only like them after they are selling at a premium?
Is there an alternative? We believe there is. Instead of chasing returns, invest in a globally diversified, risk-appropriate portfolio of stocks and bonds. Then employ a proactive rebalancing strategy. This will enable you to avoid the dangers of well-intended but ill-timed market timing and help you obtain a successful long-term investment experience.
For more insight, listen to Jentner Wealth Management’s weekly podcast by clicking here. Or download Jentner’s newest white papers on The Four Cornerstones of Prudent Investing and The Active Versus Passive Investing Debate.