As we know, the markets go up and down. It’s just part of the deal! But sometimes the peaks and drops can get a little intense, so it’s worth revisiting this reality once in a while.
The most mindful long-term investors are usually less alarmed by the bumps along the way. They know what they’ve got is basically a lifetime pass on a rollercoaster. But it’s the ride to greater potential returns, so they can keep the thrills in perspective.
What would the alternative be, in our rollercoaster example? If you get spooked on a big drop, there’s no abandoning your seat. “Please keep your hands, arms, feet, and legs inside the vehicle while on this ride,” the announcement cautions.
It’s best to stay in your seat, your best chance to get to the end of the ride in one piece.
As long-term investors, we know that we can afford to let each cycle just run its course. Jumping off the ride partway through sets us up for more trouble and more work than it would ever be worth: how would we know when it’s best to jump back on? How do we know that we’ll be able to jump safely?
We hope this is context enough to allow us to be blunt with you: long-term investing is a ticket for the whole ride, whatever that may mean.
Selling out? Selling out is a one-way ticket out of our shop.
Your resources are your business. Where you park your wealth is your decision, completely, and each one of us needs to do what is best for them.
But we choose to keep at it for those who are thinking about the long haul. We believe it’s the most effective approach to a lifetime of financial wellbeing—and whatever legacy might stretch beyond your lifetime!
Clients, we strive to communicate our values and intentions clearly. Do you need to clarify anything with us? Call or write, anytime.
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