“I Don’t Want to Invest Now Because…”

by James McFarland, Senior Portfolio Manager.

In 2018, our firm began been meeting with a wonderful husband and wife couple. After they got to know us – and we got to know them – they became clients, working happily with one of our advisors to develop a financial plan for their retirement.

Whenever they come in, we always have good conversations – discussing their financial plan, their desires for their children and grandchildren, taxes, and how they will spend their retirement. Well, the tax discussions aren’t “fun” exactly, but we believe they are certainly beneficial!

However, whenever the topic turns to investing in the stock market, they only have one thing to say:

“We don’t want to invest now because…

The “because” is something different each time, but it is always there. We hear this kind of thing a lot. Many investors are nervous about the markets, the economy, and the general state of the country. And it can’t be denied – there’s a lot of uncertainty in the world today.

But the thing is…this isn’t new. When we look back through modern history, each year there has always been a reason to say, “I don’t want to invest now because.”

Take a look:

Reading through this time line, we can see two things:

First, we can see that in every year since 1934, it is always possible to find a reason to be worried about the market. There is always a reason to be uncertain about the state of the world. There is always a “because.”

Second, we can see that from 1934 to 2018, during all of that uncertainty, the stock market, represented here by the Dow Jones Industrial Average, grew by over 22,000%.

This timeline indicates that over the years, “I don’t want to invest now because” has likely cost many investors many opportunities to grow their wealth and help secure their retirements and family legacy.

In contrast, our view is that investors should embrace both the above points. There may never be a “perfect” time to invest. There may always be reasons to worry. But if history continues as it has, the power of markets will endure, and growth will continue.

The bottom line: We believe long-term investors will continue to be rewarded.

Certainly, everyone needs to be smart about investing. We, the Investment Team at Oak Harvest, usually take a methodical, four to six-month approach to investing new money into the public markets. We believe it is vital for investors to tune out the noise.

We believe that volatility equals opportunity and we take advantage of opportunities the market gives us. We believe that a proper diversification and allocation strategy may aid greatly in achieving a better investment outcome.

And most importantly, we believe in applying all of our expertise and experience on behalf of our clients.

 

Ready to take the next step? Contact us today, and learn more about avoiding the shackles of “I don’t want to invest now because…”

 

Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. Diversification does not eliminate the risk of market loss.

Views and opinions are subject to change without notice. Data cited is believed to be reliable but is not guaranteed. This article is distributed for informational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investing involves risk.

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