I am often asked whether it is a good time to invest or not. My response has always been that a good long-term plan is the best strategy to investing. All of the ups and downs can give the average investor an ulcer. Most investment professionals will tell you that staying invested in stocks despite negative news has historically been a profitable decision.
There will always be negative news that will make investors wary.
Consider the major news events going back to 1972. Watergate and Vietnam in the 70’s, inflation and the Middle East turmoil of the 80’s, LA riots of the 90’s, Afghanistan and Iraq in the early 2000’s, and even the recent pandemic.
Disciplined investors who were able to tune out some of this noise and stayed invested in stocks were rewarded long term. The stock market had returns as high as 21.55% during these times. A $10,000 investment in 1972, if dividends and capital gains were reinvested without taxes, would be worth as much as $1,975,778 today.
An investor can go it alone these days and conduct trades for themselves on line. This is not for everyone however. I always recommend that you sit down with the professionals you can trust to properly manage your portfolio for you.
I often refer clients to Daniel Snapp, a financial advisor with Edward Jones in Winchester. Daniel will take the time to understand your goals and explain things so that you understand. His office is located at 609 Cedar Creek Grade, Suite B in Winchester. His phone number is 540-771-2058.
You can find him online at https://www.edwardjones.com/financialadvisor/daniel-snapp