Stock Market Lemmings Too Often Lose Money
March 29, 2009
In this article, "Stock-market lemmings too often lose money," published in the March 30, 2009, edition of the Star Tribune, author Nate Wenner writes about the importance of investors working with an advisor who knows you and the details of your situation and goals.
Resisting the urge to follow the crowd or the market is essential. Each person has their own appropriate asset mix, based on their individual situation and planning circumstances. Clearly, those in or approaching retirement should have a more conservative portfolio.
Wenner emphasizes that the short term things can feel very uncomfortable, especially for investors with aggressive portfolios. It is important to understand, however, that near-term market predictions are not possible, although in hind sight they always seem so clear. Investors with a long-term view (whether conservative, moderate, or aggressive) will perform much better over the long haul. That said, investors should be careful not to get caught up in acting on impulses driven by what is happening “now,” whether good or bad. If your financial plan is properly considering all important aspects of your individual situation, your investment plan should sustain you.