Some of the wisest people I have ever met are also the quietest.  There is a sense of calm that comes along with wisdom.  This same thing is true about the stock market.  The more you study it and become wise to it, the more you realize that there is a long-term trend that continues to show up.  That trend is “stay the course, and you will be rewarded”.

Let me show you what I mean.  Here is a chart* full of historical investor concerns.

Source: DFA

During the last 48 years, the stock market grew to 59 times its original value.  There were many issues along the way like today’s issues of potential trade war concerns, rising interest rates, and inflation concerns, but the benefit of maintaining a long-term strategy that fits your individual goals and risk tolerance has shown itself over time.  

As an investor in a diversified investment portfolio with long-term (10 or more years) objectives, our advice is to be still and know that your waters run deep.

*MSCI World index (net dividends), 1970-2017.  Indices are not available for direct investment and do not reflect fees associated with the management of an actual portfolio.  Past performance is no guarantee of future results.


Published on 12/10/2018.