Recap |
Individual Investors should be in the buy, buy, buy mode till at least November. |
Review |
The market looks toppy here, but stocks are still undervalued. |
What To Do |
Individual investors are so nervous and risk averse that they jitter about a perfectly normal market correction after a pretty good run of 20+ %. The individual investor should be reminded this is a psychological (maybe even physiological for some) emotional response. Given the nasty market corrections of the past, who can blame them? Certainly not I. That being said, let me point out a few more logical responses. One, stocks are still historically undervalued compared with corrections past (even with the recent market gains). Two, consider your tax bill and the accounting nightmare associated with rapid emotional trading. Three, the actual trading costs of trading can rapidly eat into returns. Four, if you trade, you run into the added risk of missing the dividend payment. For those who like dividend payments, and/or count on them in retirement, this could be a decisive factor on its own. Five, remember – if you get out, then you have to get back in. Again, evidence and research proves this to be nearly impossible. You may be right once, but once isn’t good enough, you have to be right twice; and then be right on multiple subsequent occasions. Lastly, trading is added stress to an already over-stressed society – especially in this Economy. The Individual Investor would benefit much more focusing on dollar cost averaging, their “work”, and the health and wellbeing of “their” family. |
Quote of the Week |
As for me, all I know is that I know nothing. – Socrates |
Clark Bros. is hiring! |
Stay Positive! Think Positive! Act Positive! Be Positive!
Clark Bros. is hiring Independent Registered Investment Advisor Representatives – full time, part time, anytime, anywhere. Please visit our web site at www.clarkbrothersinvestments.com for more information.
Jason R. Clark
T: 720 255 5711
jason@clarkbrothersinvestments.com
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Clark Brothers Investments
Registered Investment Advisors
18810 E. Whitaker Circle
Aurora, CO 80015
www.clarkbrothersinvestments.
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