“Let’s face it, if you are caught up in the daily stock market swings, there will be times when the short-term volatility in the stock market will make you feel like you are caught hanging on the side of a cliff, and you will be inclined to do things with your investments that are not so smart, like switching mutual funds, trade stocks, or move to the sidelines. In reality, the smartest thing you can do is direct all your attention to your family, your career, and your pursuits, bolstered by an inner confidence that your stock market investments are invested in the long-term productivity of human beings, not a risky mountain climbing expedition.” From The Coffeehouse Investor – How to Build Wealth, Ignore Wall Street, and Get On With Your Life
Welcome to a bear market, defined as a decline of 20% or more from market highs.
Coffeehouse Investors recognize the inevitable nature of bear markets and draw on a little history to serve as a reminder that an investment in the long-term productivity of human beings is a risk worth taking.
It is possible the stock market will trend significantly lower before bottoming out. Here are three questions for you to ponder through this bear market – and the next.
- Am I committed to my financial plan? A successful plan takes this bear market into account by integrating returns less than the historical averages. Does yours?
- Am I committed to the investments in my portfolio? A successful portfolio diversifies beyond a handful of individual large companies and the S&P 500 Index, regardless of how successful these stocks and funds have been in the past. Does yours?
- Am I committed to focusing on meaningful things in my life, away from the daily fluctuations of my portfolio? Coffeehouse Investors, knowing bear markets won’t impact their lives, direct their energy away from portfolios and toward the people and pursuits that bring meaning to their lives. Where are you directing yours?
If you want to navigate this next chapter of the stock market with some piece of mind, let's strategize and build a Coffeehouse portfolio together.