President Donald Trump’s wall, relations with Mexico, phone talks with Russia’s President Vladimir Putin, a temporary ban on travelers from seven predominantly Muslim countries. Whenever you turn on the television or your computer, the inescapable, unrelenting conversation ensues. When it comes to investing and your portfolio, it is only natural to focus on the short-term uncertainties and forget about the importance of keeping a long term perspective. The graph below reveals that historically, investors were rewarded for staying in the market. In years where the markets ended positive, there were momentary negative returns that sparked temptations to sell.
Yes, it is important to be cognizant of the short-term, however we must not let those distractions stray us off course from meeting our financial goals. There will be rainy days throughout any given year and we will weather those storms and stay on track to meet our long-term portfolio objectives.