“Investors are on edge after Tuesday’s selloff, with U.S. stock futures falling and markets in Asia and Europe on the retreat,” reads this morning’s WSJ.
Are we having fun yet? Now that Labor Day is to our stern, the market seems a bit more serious, don’t you think? Can it really continue at this pace for very long?
“How are we doing?” you might ask.
I don’t know how “we” are doing, I think to myself. I just know I’m doing fine and don’t check my statements more than a couple times a year, typically around tax time.
When you look at how yesterday’s market decline impacted bonds, you quickly realize they were up in value and point to the essence of a balanced portfolio.
One trading day does not make a year, but over a lifetime, you can see the benefits of having a steady hand. More fortunes miss the boat because they throw over the anchor and stay put too long.
The success you have in money and in life has more to do with Father Time than anything else. You need to be around to be in the game. Time will not bend to your wishes and desires, but it will be the key element to your long-term success.
I’ll never forget a conversation I had with Dick Young 20 years ago when he said, “Survival Guy, I made more money last year and the year before not because of anything I did, though owning good stuff helped, but because of time. Time is the key to the miracle of compound interest. Remember that, and remember to remind your clients.”
Action Line: Consider this a gentle reminder to not chase the market but to be patient and let Father Time do the heavy lifting. When you want to talk about putting time on your side in your portfolio, I’m here. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.
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