and missing Paul Kangas
I recently took a vacation and enjoyed the time away from the flow of news about the world and the markets. If you read or listen to news you’ve likely heard plenty of information about the stock market being at new highs and why it could go down. There are lots of stories of the other stripe too, talking about how the market is just entering a stronger bull phase. What’s interesting, is that this has gone on for several years. But it can be confusing as you try to figure out what’s really happening. There are a lot of voices saying different things. Who’s right?
Well, this is one of those dissatisfying answers. All of these points usually have some validity. At some point, the markets will go up. And they will also go down. We just don’t know the exact timing. So, what’s an investor to do?
Usually when some part of the market is falling, another part is rising. This often works with diversifying between stocks and bonds. It can also work with growth stocks and value stocks or international stocks and domestic stocks. This is part of the “don’t put all of your eggs in one basket” theory.
Remember your short-term and long-term goals
No matter what the market looks like, it’s best to keep money you will need in the short-term (under 5 years) in conservative investments that are not prone to lots of volatility. And if you aren’t looking to use the money for 10 or more years, remember that the markets even out over the long term and tomorrow’s worrying market news will be ancient history when it’s time to access your money in the future.
Listen to Trusted Voices
There are many excited voices out there when it comes to the markets. I find it best to keep the volume down or off and speak with those I know have experience, and are honest enough to know that no one can predict the next market moves. I look for people I trust. Mostly that means I keep the television off but I do want to include a tribute to one of my favorite TV business personalities. If you watched Nightly Business Report on public television any time between 1979 and 2009 when Paul Kangas retired you remember that clear, calm voice that could rattle off the market information each night. Paul died earlier this year at age 79. He’ll be sorely missed.
If you have questions about the market you’d like answered, please give us call. We’re happy to do our best to make sense of what’s happening.