Investing Now – “This Time It’s Different?”Dmv Woods October 3, 2017 0 COMMENTS
Best to stay out of the markets: How often in the tumult of the past year are you currently inclined or advised to this particular effect – lots of complications, heightened risks, means that so different, advisable to steer clear before the future outlook clears.
No doubt an oil price collapse of epic proportion and artificially low bank interest levels – from the U.S. kept at near-zero levels for many years at a stretch – have taken their toll. But to categorically stay out of the stock markets and prevent investing is usually to overlook the late Sir John Templeton’s warning the words “this time it’s different” will be the most expensive, or dangerous, from the entire investment lexicon. Even Sir John could possibly agree it has been a whole lot different considering that the near-collapse around the globe overall economy inside the years 2007-09 along with the dislocations of the oil-related “tsunami” that began hitting in late-2014. But, not so different that this timeless market cycle as well as ceaseless self-adjusting mechanisms wouldn’t yet again bring inevitable economic and stock market recovery.
Sir John didn’t have any doubt about this while he reminded how bear investing arenas are born with the height of euphoria, much like the tech-boom of 2000 – 01, and bull markets within the depths of despair, like the spring of 2009 – and perchance January – February 2016.
At the same time there were his steadfast adherence to “time in” rather than “timing” the markets being much greater important, but always – as outlined by a well-planned and executed investment strategy. Add his favourite word “fortitude” and his famous Templeton Mountain Chart serves as a timeless reminder of what a structured, long-term approach to investing will bring.
While precise market timing can’t ever be simple, awaiting a Godot mostly never turns up can only be self-defeating. The fact is it is rarely altogether different. Instead, a good Sir John at his word; invest in accordance with a strategically balanced plan. Wounded Canadian investors ought to keep doing this “fortified” knowing that a fire-sale cheap Canada, its dollar and stock markets can seldom have offered such longer-term bargain investment attraction to accommodate individual capital-appreciation or income needs, risk-reward tolerances and ultimate portfolio goals.
This is especially true for investors managing their particular portfolios. Obtain an advisor / researcher to assist you, build your portfolio as outlined by well-established and prudent criteria and think long-term. Don’t wait for the “perfect time” to acquire, it doesn’t exist. Or, as Si John was partial to saying: “The ideal time to invest occurs when you have the money”. Know that if the market industry is at its most tumultuous, you’ll feel anxious and even sell. Resist the urge, secure in the knowledge that your portfolio will regain its value and a lot likely then some, if the market swings back – that this always does.