It’s easy to get anxious because of world events, fear of a market crash and the mixed messages in the media. With all the storm and stress of the last few years, it’s only natural to react to each ping of our phone’s news apps with a deep sigh and a worried “what next?”
For some perspective, we’ve seen the market compared to an excitable dog on a very long leash darting randomly in every direction1. The dog's owner is walking from Columbus Circle, through Central Park, to the Metropolitan Museum. At any one moment, you can’t predict which way the pooch will dart. But in the long run, you know he's heading with his owner to the Met Museum. However, it’s astonishing that almost all the market players, big and small, seem to have their eye on the dog and not the owner1.
With that said, it is easy to get caught up and react emotionally to the many crises happening all around us. Like the dog darting in many directions, we have inflation at multi-decade highs, Fed tightening, growth scare, Covid19, supply chain concerns and the Ukraine situation pushing and pulling on the economy.
That’s why it is important to stay focused on your investment strategy over the long term. Investors who think long-term will focus on sectors such as productivity, consumer health, demographics, long-term inflation trends, innovation, growth rates and valuation in the market.
We believe today’s market is an investor’s buying opportunity. If you have excess cash sitting in a bank account losing value to inflation or if you are eligible to contribute to your IRA or Roth IRA for 2021 you should see this as an opportunity to invest those funds at a lower market level.
1. © Eventide Asset Management, LLC.
Are you ready for the Next Market Crash?
The world is fearful right now and your financial future hangs in the balance. Now is not the time to panic!
Watch the video and learn:
• The WORST POSSIBLE things an investor can do now
• What is at risk in these times (hint: it’s not what the media wants you to think)
• The upside of a down market
• 3 of the BIGGEST Investing mistakes