This week when we reviewed accounts for several clients, we found a few examples of client portfolios that have doubled in value over 10 or 11 years. That equates to a 6%-7% rate of return each year on average. Not too bad given that happened during some turbulent times:
The Great Recession of 2008 and 2009, The housing bubble, Fiscal cliff, “The Lost Decade”, Hurricane Katrina, Increased political infighting, Slowing growth in China, War in Afghanistan, Hurricane Sandy, Failure of Lehman Brothers, War in Iraq, BP’s oil spill in the Gulf, Possible government default, Election turmoil, European debt crisis, Government bailouts, “The New Normal”.
The point is that investors have good reason to look beyond the day’s headlines.
If you or someone you know is sitting on the sidelines waiting for the dark clouds looming in the distance to blow away and for the sun to come out, you’ll end up waiting for the rest of your life. There will always be a reason not to invest. There will always be a reason to sit on the sidelines.
The government is no longer shut down. The U.S. did not default. Clouds are clearing, right? No, they’re still there just in the distance. We still have to worry about the debt ceiling, bond tapering, interest rates, Europe’s economy, tensions in the Middle East, a new Fed Chairman…
Perhaps it’s time to implement an investment strategy designed for investors fearful of what those dark clouds could do to their portfolio. Contact us to learn how we can help you.