Financial Planning Fridays #57: Finish Strong
After roughly 20 months of uncertainty and constant doomsday headlines, investors who maintained their strategy, rebalanced when appropriate, and stayed disciplined were rewarded. This episode reinforces why tuning out media noise and sticking to a long-term plan is one of the most valuable things an investor can do.
After roughly 20 months of uncertainty and constant doomsday headlines, investors who maintained their strategy, rebalanced when appropriate, and stayed disciplined were rewarded. This episode reinforces why tuning out media noise and sticking to a long-term plan is one of the most valuable things an investor can do.
Key takeaways
- Maintaining an investment strategy through uncertainty is rewarded over time.
- Rebalancing when appropriate keeps a portfolio aligned with its target allocation.
- Media doomsday coverage rarely reflects what disciplined investors should do.
- Tuning out short-term noise helps investors capture long-term returns.
Our clients have done an amazing job maintaining their investment strategy throughout the constant uncertainty of the last 20 months or so. Despite the incessant doomsday coverage from the media, they have hung in there, rebalanced when appropriate, and have been rewarded accordingly because of this. Though it hasn’t been easy, we knew there were, and shared, a number of reasons to be optimistic heading into 2023. We also shared a few more reasons to be optimistic heading into the second half of this year, and, now, felt it only appropriate to share one of our favorite reasons to be optimistic heading into the year-end. The 4th quarter has been the strongest part of the year, on average, for the past 20 years, 50 years, and 100 years for the market. It has had an average return of more than 4% for the past 20 years, far outpacing all other quarters. This chart also shows a similar story for the past 50 and 100 years. As we know, the market does not always repeat itself but there are certainly trends that have held up over the long run. We have been optimistic all year and now hope for a strong finish to a great year! 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.
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