The Market's Sound and Fury- And Why We Remain Optimistic
“Bear with me if I call again in a couple of days because you are the only one keeping me in the market.” So said a wonderful client to me, recently. Thank you for your trust and confidence! And keep calling—ad infinitum—because you’re not the only one feeling this way!
Equity markets are exceptionally emotional right now, with large swings up and down, daily. We do not want to make big decisions based off short-term swings when they may have long-term impacts. Think about the well-known research, that investors underperform their investments. If they had only held—and not sold—they likely would have earned a better long-term rate of return. Read more about it here:Jackson National and First Trust. (1)
To paraphrase Jack Bogle, it’s not a good idea to time the markets. Equity markets give us an opportunity to earn the potentially high rates of return that businesses earn over long periods of time, meaning decades. The equity markets, over the short-term, days and weeks, are a tale told by an idiot—full of sound and fury, signifying nothing. Read more here: Zacks. (2)
Here are a handful of reasons we are optimistic at AIFS. Read these links at your pleasure.
- Athena Invest
- Michael Levitt
- McKinsey & Company: Safeguarding our lives and livelihoods
- COVID-19: Implications for business