The stock market has made history, marking the longest bull market ever. This resilient bull market has lasted for an amazing nine years. We are closing in on a decade.
The S&P 500 index has climbed an incredible 325% since its low in March 2009. This is a great reminder that market timing does not work. A great reminder to stay the course when things seem at their worst.
Not many people remember that it took Amazon nine years to recover from its peak in 2000. The price was $106 a share at the time and now it’s $1,883. Microsoft took even longer – seventeen years to recover from its peak at $58 a share. Now its $106.
The questions to ask yourself: Were you a long term investor? Were you patient enough to wait nine or seventeen years? Did you try to time the market or second guess yourself?
David Karp was quoted this week by CNBC, “After downturns, the market has always recovered, though some recoveries have taken longer than others. But trying to time the market is consistently a losing proposition.”
There is no shortage of risk in today’s world that could quickly affect investment markets. Investors must remain disciplined to their asset allocation strategy and resist the temptation to make investment decisions based on emotions, positive or negative.
The markets, business and personal achievements all have a lot in common. There are ups and downs, good times and bad times, but success is achieved by staying the course.
At PagnatoKarp, we help high-net-worth families move forward. Our boutique team of professionals manage complex needs through investments, financial planning, tax, legal, private banking, family governance and concierge. With True Fiduciary® standards of transparency, we embrace the legal obligation to put your interests first while focusing on asset protection, cost, and opportunities.
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