I love the stock market. I also love biking, running, triathlons, coaching my kids, snow and water skiing, traveling, hanging out with my friends, and coffee. Four years ago, I had a conversation with a client who was fully convinced the sky was falling and another HUGE correction was imminent! So, he pulled out of his very-balanced portfolio and put almost 100% of his money in bonds and cash. My quick calculation is that he has missed about $1M of gains in the past few years. Typically, what happens is these “investors” get back in at about the next market high and ride things down again…..I’ve seen it happen again and again.
I love volatility. I also love conversations with people that ask me “what did the market do today?”……and then are perplexed when I tell them that I haven’t checked it in the past few hours. If everyone would adopt that mentality, we could all worry about things that really matter…..but that’s another blog for another time! Volatility brings opportunity. If investing was easy, everyone would be doing it and returns would be much lower. Thankfully, investing isn’t easy for most people and most professionals, so there are countless opportunities for true investors to take advantage of the fear and greed that drive millions of people into bad decisions.
I love our clients. Over the 17 years that I’ve been at Foster Group, I’ve had the privilege of working with hundreds of kind, generous, hard-working and competent clients. My basic conclusion is this: If you can keep things simple, be great at the fundamentals, save a little each month, eliminate debts early, insure the things you can insure, live within your means, delegate the tasks you don’t enjoy or aren’t an expert in…..you will enjoy life, family, and the freedom to work and bless others.
Keep it simple team!
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