This weeks Around The World
(ATW) is again on risk, and
completes a month where this
topic has been front and centre.
The economic cycle turns 100
months old in October, which puts
us somewhere after the 7th Inning
Stretch in baseball terms. This
means that 2018 will be the last year of expansion in all likelihood, so what are investors to do? Before answering that directly, here are several important points to remember:
- Know that a well-diversified, well managed portfolio will go down if markets sell off.
- Know that markets over the long term go up more than down. So staying invested in a balanced portfolio pays off over time.
- Know yourself. Are you likely to hit the panic button if your portfolio is worth less than it was when the year started?
- Know your money. Before the next downturn in markets, revisit your portfolio and know what you're holding.
- Know that it's always darkest before dawn. When markets look like they can't get any worse, it’s usually the point where they can only get better.
Spend some time thinking about each of these points. They're not hard to remember and should provide context and reassurance through tough market conditions. When will those tough times arrive? Not sure exactly, but one more point to consider:
Anything that can't last forever, won't last forever.
We've only really known good times since the beginning of 2009. That's quite the winning streak. That'll change and sooner than later. But when markets
are down, that's where the buying
opportunities can be found. And we're
confident we'll find them. Until then, patience will be rewarded. The attached cartoon from the New Yorker speaks to that.