Lat week, I noticed the following headline on yahoo.com: “Why investors may get a rude awakening: Siegel”. Yes, this is the same Jeremy Siegel that predicted that the 2008 stock market would be better than 2007, led by financial stocks. Financial Stocks ended up dropping nearly 70% by the end of 2008!
Are we suggesting that a correction in the market is not likely? Absolutely not, that is always a possibility! What we are saying is that nobody knows what is going to happen including a famous author and professor at Penn.
On September 16th , the market ended up jumping over 120 points. There is a lot of noise out there today – ISIS, FED, Apple, China, Alibabba, Scotland, Atlantic City, Ukraine, and on and on. It’s great to know what’s going on in the world, but, responding to it by changing you investments around is a sure way to get burned.
Instead, it is OK to admit you come from a place of not knowing and make your decisions around that which you can control – diversify, choose low-cost products, and turn off CNBC!