Our goal as a firm is to provide our clients with a greater sense of comfort and security. Each client defines this differently, but to most, this means having financial independence and adequate resources to be able to do the things in life that are most important to them.
Today, information and news moves ever faster, which causes society’s perception and time frame to become much shorter. For an investor, this is not a good perspective. To be a successful investor, patience and a long time frame are very important. We discuss and stress this with our clients.
Last week, my son graduated from high school. For the fun of it, I looked up what the S & P 500 was when he was born, in late 1994. At that time, the S & P 500 was 469.
The day he graduated from high school, the S & P closed at 1,329.
Review those figures again:
Many significant events occurred during these 17 years. There is never a period of time without uncertainty, or crisis of some form. It is our role as financial advisors to work with our clients, to develop an appropriate financial portfolio, so that you and your family can benefit from the long term financial gains of owning stocks.
How long will you save, to fund your children or grandchildrens’ education? How long will you save for retirement? How long will you live, during your retirement?
A long time.
Be patient. Have the proper time perspective.
Develop a globally diversified portfolio, and the time perspective to allow yourself to reach your financial goals. It will be worth it.
Note: Other time periods may show different results, but the trend over long time periods are positive. The S & P 500 is an unmanaged index of US Large company stocks. Our firm generally structures stock portfolios to include globally diversified asset classes, which will include US and non-US stocks, of both large and small, growth and value companies.