Mind Games: Who Would Have Thought?
One year ago, the markets had just experienced a sell-off. The Fed was raising rates and there was talk of a potential government shut down, trade wars and economic uncertainty. Based on recent performance and news headlines, 2019 did not look promising.
As the year went on, the negative headlines continued. There was constant talk of recession and an economic slowdown. In August, we experienced a correction and the media had a heyday with it – instilling fear in many investors.
Add to that the political turmoil and eventual impeachment. From a news/headline standpoint, this was an awful year. Many investors sold out of stocks or at least reduced their exposure. Over $135 billion was pulled from US Stock ETF & Mutual Funds. Despite all these headlines, the stock market had a banner year. Through 12/25/19, the S&P 500 was up over 31% (with dividends reinvested).
2019 wasn’t just a great year for gains, it was a great year to be reminded of an important investment lesson. The media is nothing more than noise. It may be alluring. It may influence you to change your investment strategy. But heeding the news be a costly choice.
Therefore, I am always talking about how important your financial plan is. It is our guide and map to pursue your financial goals, and it is our anchor to get us through the uncertain and difficult times.
By Anthony C. Williams, CWS, ChFC, MRFC, CLU | Investment Advisor Representative | President & Founding Partner of Mosaic Financial Associates & Orthopaedist Advisory Group | Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor. Cetera is under separate ownership from any other named entity.
©2020 The Behavioral Finance Network. Used with permission.