top of page
  • Writer's picture Treavor Dodsworth CFP®, CPA, CKA®

#16 - Stock Market Perspective


Much of the US stock market has been hitting record highs recently. Take a look at the Vanguard Total Stock Market ETF - VTI.

Source portfoliovisualizer.com - See the chart and disclosures here.

In bull markets, it is tempting to assume this is the new normal and that markets will never have another significant draw down.

I do not believe the stock market will rise indefinitely without experiencing a draw down, but at the same time, I do not believe in trying to time when the market will go down and up. See Ben Carlson’s articles below for excellent examples as to why.

Is it possible to stay prepared mentally/emotionally for stock market movement that will give us greater resolve when the storm comes (whether it is next week, next year, 5+ years) without allowing that mindset to cloud our investment decisions? I believe it is with the correct investment perspective.

Below are my initial thoughts. I would love to hear any thoughts you have as well:

  • Money is not the goal or objective but merely a tool to reach goals.

  • Remember to maintain a long term investment perspective.

  • Recognize that market movement is normal.

  • Practice separating emotions from investment decision making so that we do not let greed drive our buying or fear drive our selling.

 

Interesting Article(s) or Video(s)

A Wealth of Common Sense - The 5 Types of Market Crash Predictions

  • Fascinating look at several market crash predictions and the result if the predictions had been followed.

A Wealth of Common Sense - What Would You Have Done in 2009

  • Ben shares valuable investment perspective.

 

Thank you for reading! What investment perspective assists in preparing us for stock market movement?


Thanks! Message sent.

All written content on this website is for information purposes only. Opinions expressed herein are solely those of Sycomore Financial, unless otherwise specifically cited.  Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. The owner of this website takes great care to thoroughly research the information provided to ensure that it is accurate and current. Nonetheless, the content on this website is not intended to provide tax, legal, accounting, financial, or professional advice, and readers are advised to seek out qualified professionals that provide advice on these issues. All information or ideas provided should be discussed in detail with an advisor, accountant, legal counsel, and/or other pertinent professionals prior to implementation. In addition, the owner cannot guarantee that the information on this website has not been outdated or otherwise rendered incorrect by subsequent new research, legislation, or other changes in law or binding guidance. Neither Sycomore Financial or it's owner shall have any liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website. In addition, any advice, articles, or commentary included on this website do not constitute a tax opinion and are not intended or written to be used, nor can they be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Any mention of an investment product or solution is not a recommendation to buy or sell. ETFs that are mentioned may not accurately reflect the market segment mentioned. Past performance is not a guarantee of future results. Any mention of rates or return should not be seen as a guarantee those rates or return will be received.

​

bottom of page