{"id":1301,"date":"2019-11-06T15:56:29","date_gmt":"2019-11-06T15:56:29","guid":{"rendered":"https:\/\/vhfinancialmanagement.com\/?p=1301"},"modified":"2019-11-06T15:56:31","modified_gmt":"2019-11-06T15:56:31","slug":"markets-hit-an-all-time-high-what-to-do","status":"publish","type":"post","link":"https:\/\/vhfinancialmanagement.com\/2019\/11\/06\/markets-hit-an-all-time-high-what-to-do","title":{"rendered":"Markets Hit an All-Time High: What to do?"},"content":{"rendered":"
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The market once again has hit an all time high. That\u2019s good,\nright? But, oddly enough, I sense some skepticism in the air.  Can the market sustain these values?  Will the impeachment proceedings harm our\neconomy?  From other angles I hear the\neconomy is strong and has room to move ahead.  It just depends who you listen to.  The political landscape is sad. The democrats\nthis or the republicans that!!! <\/p>\n\n\n\n

With the market at an all-time high, it\u2019s important to\nunderstand the value of an opinion\u2026or how little someone\u2019s opinion may really\nhave on reality. Depending on what station you tune into with your morning coffee,\nyou might be led to believe our country is being run into the ground.   Another station may state we are stronger\nthan ever.  Most of this is all\nconjecture, and, while it\u2019s fine to pick a side and stand firm letting your moral\ncompass guide you, letting the talking heads guide your financial and\ninvestment decisions can be a bad move. <\/p>\n\n\n\n

Why? Because the conversations we hear that light a fire in\nus are usually driven by emotion, and making financial and investment decisions\nbased on emotion is a recipe for pain.  Fear\nand greed are two emotions that should not be the guideposts for financial\nsuccess.  Again, depending on what\nmessages you hear in your circle (the market is about to collapse, so sell\neverything or the rally has just begun, so buy more) should not be the needle\nmover to investment decisions.  You see,\nfear and greed are dangerous when it comes to investing.<\/p>\n\n\n\n

What to do? <\/p>\n\n\n\n

We should establish our plan based on prudence and care and\nstick to it!  Let your investment\nallocation (the allocation of equities vs interest earning assets) be your\nguidepost and not your emotions.  When the\nmarket leads your portfolio to be equity heavy, rebalance and add more interest\nearning (bond type) assets. When the equity markets slide down and pulls your equity\nmix too low, rebalance and buy more equities.  \nWhen we listen to the noise and attempt to time the market because of\nwhat we think might happen we open a dangerous door: a door that for most\npeople does not lead to financial success.  Think back 3-4 years ago and remember what the\nbuzz was around the market.  People were\nsaying things were tenuous and the market was due a correction.  What would have happened if you would have\nlistened to those \u201copinions\u201d?   If you\nlisten to your \u201cplan\u201d and let your portfolio allocation be your guidepost, while\ninvesting for the long run, you can tune out the noise.  If you\u2019re anything like me, you will enjoy\nthe peace and quiet.  <\/p>\n

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