Frothy Markets

Last week the S&P 500 Index and The Dow Jones Industrial Average reached all-time highs, surpassing peaks set in early 2022. This leads the financial media to dwell on frothy markets and protecting profits.  

Anxiety runs rampant during bear markets.

But anxiety tends to creep in during bull markets as well.

Is it possible to ignore the stock market, and live our lives as if the stock market doesn’t exist, when for many of us, over half our liquid net worth is attached to its daily fluctuations?  

The best advice I can offer is the same wisdom I have embraced for the past 40 years of investing – I monitor my portfolio’s balance maybe twice a year, if that. I already have bear markets built into my financial plan, so have never felt a need to track the inevitable ups and downs of common stocks.

At its core, long-term investing embodies the art of patience and resilience. Consider the remarkable journey of the S&P 500 Index over the past two decades. Even for those unfortunate souls who entered the market at its peak on October 9, 2007, a period preceding one of the most devastating financial crises in recent history, the returns have been nothing short of astonishing. Despite a painful selloff of over 50%, this index grew by over 9% annualized through January 2024.

By embracing a long-term perspective, Coffeehouse Investors align themselves with the relentless forces of growth and prosperity that have propelled the markets forward for centuries.  

In a world dominated by instant gratification and short-term thinking, the philosophy of Coffeehouse Investors transcends the noise of the market and allows us to focus on what truly matters: the enduring principles of discipline, diversification, and patience.

Long-Term Financial Planning

How do you plan for the next 20-30 years with peace of mind?

Schedule a complimentary strategy call, and I'll show you how we build financial plans for the long term. If you have $1 million or more of investible assets and are in or close to retirement, connect with me and discuss your investment and financial plan journey ahead.