3 Powerful Lessons From The Bull MarketSubmitted by LWM | Linden Wealth Management LLC on August 22nd, 2018
There are some powerful lessons we all can learn from what is shaping up as the longest bull market in history.
Reflect back on your own investment behavior over the last 10 years. Quite a lot transpired over this time. It was often volatile, uncertain, and in the depths of the financial crisis downright scary. How did you behave? Did you stick to a disciplined plan, stay the course, or move in and out of the market based on some feeling or hidden anxiety? If it's the later you're not alone.
I think there are 3 important lessons we can all draw from this bull run to help us in the future:
- The economy drives stocks. As long as it expands stocks will do fine. Don't let anything else distract you.
- Sector leaders change like the wind. As the following chart shows, market leadership tends to change year to year. What's hot one year isn't necessarily hot the next. Stay diversified and resist chasing returns.
- Stick with a long-term plan. Deviating from your plan can be costly. Control the emotional impulses we all have.
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*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.