Financial Planning Fridays #83: Our Core Investment Beliefs

We would like to share with you our core investment belief at Presilium. 

We believe that the world is improving every year and that investing in stocks is the best way to grow your family’s wealth over the long-term. 

 The S&P 500 is now up about 300 thousand percent since 1950, which equates to 11.4% per year for the past 74 years. And we expect this to continue going forward. 

However, to have earned this extraordinary return, the price has been volatility. And in some cases, extreme volatility.

Stocks regularly go down an average of 14% at some point every year, even in up years. Since 1950, they have temporarily gone down 20% or more 12 times, And, on 3 occasions, they have gone down 50% or more.

We have previously and always will view these declines as buying opportunities and remain focused on the long-term. 

Throughout all volatility, we believe that we should maintain the target investment allocation that is part of your financial plan. 

This means that we will never try to avoid market declines. Will never try to time them by moving in or out of the market prematurely. We will not guess at it.

It simply means we will be buying more stock when the market goes down. And we will sell a little bit of our outperforming stocks when the market goes up.

We will, however, aim to keep enough funds in short-term bonds and money market to weather those inevitable temporary market declines while the rest remains in stocks. 

With this being Jerry’s 23rd year as a financial advisor, we firmly believe that this is the best way for our clients to reach their long-term financial goals. 

Be on the lookout for our next Financial Planning Fridays episode. Subscribe to our Youtube Channel so you never miss an episode. Or contact us directly; schedule your 15-minute call with us today.