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The Stock Market is Flat, a Good Lesson for Investors

The Stock Market is Flat, which is a Good Lesson for Investors


We are constantly reminded that life as an investor can be an emotional roller coaster. Watching your investment and retirement accounts fluctuate in value can be exhausting. No one said investing is easy, not even for the most successful investors of past or present. The good feels great and the bad feels terrible but your investment behavior is the key to success. An emotional decisions based on the "fear of loss" (panic) or the "greed of gain" (euphoria) often may negatively impact your probability of success. Below we will highlight current market levels and revisit a timeliness investment lesson.
 

Would you believe me if I told you  the stock market is flat over the last 12 month?!  


Despite the extreme  fluctuations of 2020, if you step back and look at the market over the last year, we are trading at a level today that we saw for much of 2019.  The caveman syndrome, ignoring the news and not looking at a financial statement, would have saved all of us much angst.  That is impossible to do in today's connected world but an  impressive visual captured in the chart below.

Chart-A look at the stock market over the past 12 months

The sketch below is timeless and relates to many aspects of one's personal, professional or financial life.  Each member of the Sandbox team has this printed and framed on our office  wall as a constant reminder to us (and our clients) to focus on what we can control and not get sidetracked by the rest.  Short-term market direction is unpredictable. No one forecasted a -34% decline in the stock markets this year, especially not one caused by a deadly pandemic.  It's also difficult to understand the rationale for a  significant rebound back to current levels despite depressionary-like economic data. There may or may not always be a clear reason, but price is what matters and maintaining perspective of your risk, time horizon and financial plan.  

Stock market focus image

Over the past few months, all of our personal and professional lives have been dramatically altered with plenty of time to reflect.  We guide and manage you through the best of, and worst of times, as a Fiduciary of your wealth.  We care and we take your financial success personally!  At Sandbox, Financial, our communication and transparency has never been greater, as we remain accessible and available to you.  Hopefully you have enjoyed  our perspective over the past few months and some of the hard knocks education on investing too. We'll all be better for it, even though it may not feel like it at the time. Have a great week!

Do you have additional questions about the stock market! We would love to help. 

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