The Stock Market Rally Lives On. But Can It Continue?
Jacquette Timmons
President, CEO
Sterling Investment Management
New York, NY
YES.
“It is important to remember that any market rally or boom is a reflection of either our collective fear or optimism. So yes, the current rally will continue provided the United States government doesn’t shut down or become engaged in another war; oil prices stabilize; and private industry job growth continues unabated. But even if unforeseen political or economic factors interrupt the current market rally, there’s every reason your “personal market rally” can continue.
How? By making a commitment to five practices frequently abandoned at the first sign of market duress: a) Choose your investment selections based on best available information, not your feelings, b) Continue to invest in your taxable and tax-deferred portfolios using the discipline of dollar-cost-averaging, c) Match your investment strategy and products to your short- and long-term goals, d) Rebalance to take advantage of the inherent benefit of buying low and selling high, and e) Create stop-gap procedures to help you resist the temptation to let your feelings rather than your goals and what you want your money to do for you–drive your financial choices.
