Ignoring the Noise
The financial media is permanently on the prowl for the next asset bubble. Everyone wants to make the big call and nail that next bubble. Unfortunately nailing “false” bubbles over the past 5 years has kept many an investor on the sidelines. Bubbles ARE deadly and we don’t want to minimize the declines in 2008 and 2001, but living and investing in constant fear and risk-adverse-ness can be just as costly.
As much damage can be done by being overly pessimistic as can be done by being overly optimistic. (Ask anyone who’s been in a money market since 2008.) Just as Chicken Little pronounced a falling sky, a parade of advisors have cited bubbles in numerous markets. We have seen too many investors sidelined by chicken little calls for a falling market and just as many owning worthless assets from the dot.com era.
Our advice? Ignore the noise.
Focus on long-term goals- change reluctantly and with calculation instead of in a state of panic or greed. We believe that investors need to plan and not react. Stay invested BUT stay diversified especially in this market environment.
At Fagan Associates, we sell reluctantly adhering to the adage “measure twice, cut once”. Talk is cheap but bubble talk can be expensive for your portfolio in terms of gains lost.
Please note that all data is for general information purposes only and not meant as specific recommendations. The opinions of the authors are not a recommendation to buy or sell the stock, bond market or any security contained therein. Securities contain risks and fluctuations in principal will occur. Please research any investment thoroughly prior to committing money or consult with your financial advisor. Please note that Fagan Associates, Inc. or related persons buy or sell for itself securities that it also recommends to clients. Consult with your financial advisor prior to making any changes to your portfolio. To contact Fagan Associates, Please call 518-279-1044.