What if International and Emerging Market stocks continue to outperform the US stock markets? That would be considered normal, and why we recommend being globally diversified. These asset classes underperformed for a number of years, so this was expected, we just didn’t know when it would occur.
What if the market dropped 10-20%? That would be considered normal and you should be emotionally prepared for this to occur….repeatedly in the future. These declines are always temporary, as part of the market’s long term growth. There has not been a 10% decline in US markets since the first six weeks of 2016, which is unusual.
What if the stock market keeps rising? That would be fine, and we would occasionally rebalance (sell) some of your stock funds, to maintain your desired stock allocation, per the written Investment Policy Statement we agreed upon.
What if something unexpected happens? That would be normal, as we realize that we cannot predict the future.
What if tax reform gets enacted this year? Many think this would be good, particularly if there is corporate tax reform. In the very long run, growth in future expected corporate earnings drives stock market returns. However, we cannot predict what the impact of this short term event will be to your portfolio. As we cannot accurately predict the future and neither can anyone else, we do not base our investment recommendations on market timing.
What if no tax reform legislation gets enacted this year? As we cannot accurately predict the future and neither can anyone else, we do not base our investment recommendations on market timing or predictions.
What if you have a financial question? You should call us and we can discuss it.
What if you find these blog posts beneficial? Then feel free to share them with others….like some of your friends or relatives.
This week’s Takeaway: The world and financial markets are always uncertain. There will always be “what ifs?” We just don’t know what they are and when they will occur. Our investment philosophy and how we plan on your behalf deals with uncertainty so that you can have a positive investment experience, which is focused on meeting your financial goals.