August 2024 Financial Planning Tip

Block out the Noise

In times of market turbulence, sticking to your investment philosophy is crucial. Avoid letting short-term market noise derail your long-term strategy. Focus on your goals and the solid principles guiding your investments.

• News sells: Be mindful of your intake from financial news and social media; it often amplifies market movements and incites unnecessary panic. It’s not likely to mention the phrase "stay discipline", which is exactly what you should do. Remember that these sources probably don’t align with your personal financial goals.
• Volatility is your friend: During times of uncertainty, view it as an opportunity to buy at a discount. Be a contrarian, when everyone is buying high and selling low, buy low and sell high. Warren Buffet said it best- "Be fearful when others are greedy, and greedy when others are fearful."
• Intra-year declines are common: The market does not go up in a straight line. Over the last 40 years, more than half of the time, the S&P 500 saw a double-digit pullback within the year.

Be intentional about reviewing your portfolio as part of a strategic plan, not as a reaction to market volatility. By maintaining your investment philosophy, you'll navigate market fluctuations with confidence and resilience.