Sir Isaac Newton didn’t have the stock market in mind when formulating the laws of motion, which essentially state: what goes up, must come down. However, time and again over the course of history this theory has proven true for the financial markets. A key difference is that it’s a lot harder to tell when markets will rise or fall than how quickly a ball tossed several feet in the air may land.
It’s true that understanding how current economic, business, and global influences may impact the markets can help you invest more strategically. However, knowing how to diversify your investment portfolio and properly allocate your assets may play an even more critical role in weathering changing market conditions. In addition, managing your exposure to risk through an asset allocation aligned with your goals and risk tolerance eliminates the need to focus on day-to-day market fluctuations as you remain invested for the long term.
We use a disciplined approach to investing that focuses on long-term objectives and helps you keep emotions out of the way. To learn more about our approach, click here.