Now that the election is over, investors are in a dilemma, wondering what the future has in store for their investment portfolios. The reality is that while elections may have short-term impact on the markets, over time, their impact is minimal. The global Free Market is a lifetime academic strategy based on capitalism, which always finds a way to thrive, even through the toughest of times.
The Free Market structured portfolios depend on a long-term investment philosophy and are more efficient than active money management, even when taxes increase. Your money managers are prepared to rebalance if necessary, to ensure you maintain your expected risk tolerance level.
So, what should you, as an investor, do now?
First, stay positive. Positive people attract positive events and situations. Nothing beneficial has ever come out of being negative.
Second, break free of the INVESTOR’S DILEMMA!
- Fear of the future leads investors to try to find someone who could predict the future.
- Since nobody could accurately predict the future, uninformed investors look to track record investing, which looks at the returns of previous years to predict future returns, and academically has proven to be disastrous.
- Since it’s human to gravitate toward pleasure and retreat from pain, people often break the rules of prudent investing—which is buying low and selling high—by selling investments that are doing poorly and buying what’s already increased in value. Or, even worse, they put their money into fixed income type of investments, such as bonds.
- This, in turn, leads to performance losses and loss of purchasing power, which leads to more stress and fear of the future.
- The Investor’s Dilemma starts all over again, in a never-ending cycle.
Ask your Free Market Wealth Coaches to help you break out of the Investor’s Dilemma and tune out all the media hype of negative doom and gloom. Check out the short educational video classes on our www.WordhouseWealthCoaching.com website. We also offer Free Market classes in Grand Rapids, to help you understand what’s really important about investing. Contact Maria to find out when the next investor coaching class is and reserve your seat.
Our ultimate goal is to guide you on your journey to true investing peace of mind, and to avoid the Investor’s Dilemma.
Written by: Maria J. Wordhouse Kuitula and Phyllis J. Veltman Wordhouse, Free Market Wealth and Stewardship Coaches, co-authored the book Stress-Free Investing, available at Amazon.com. Maria is the President of Wordhouse Wealth Coaching and could be reached at 616-460-6518 or at [email protected]. For QUESTION LISTS and INVESTOR EDUCATION VIDEOS, go to www.WordhouseWealthCoaching.com. © Wordhouse Kuitula 2013 Photo: stock.xchng