We sometimes think that the most challenging part of investing involves choosing our investments. But really, the most difficult part comes after you’ve identified your goals and selected the best investments for those goals. At this point, you’ll start to hear many reasons why you should do something else. It doesn’t matter if it’s the talking heads on CNBC or your next-door neighbor. Somebody will tell you why you’re a fool for sticking with your investing strategy.
The noise about doing something different only increases when the economic environment feels more uncertain. Case in point, recent events in the United States suggest that we’ll face some bumps in the future. We know, for instance, that things just cost more because of inflation. But inflation represents a logical consequence given all the money Congress pumped into the economy. That’s why we see the Fed taking steps to help address the issue by increasing interest rates.
For anyone who lived through the ‘70s and ‘80s, current events make it feel like we’re repeating history. From gas prices to food supplies, we recognize that supply chain problems from the pandemic haven’t gone away and are likely to remain with us for some time. The war between Ukraine and Russia remains another source of tension for world markets.
There’s a lot of turmoil in the world. That’s why we understand if you’re feeling concerned about what’s happening right now. However, these short- and medium-term events do not change the underlying principles driving your long-term investing decisions. We’re all about the long-term at Strathmore Capital. When you make plans based on goals years in the future, it can prove painful to your bottom line to change plans based on shifting events in recent weeks or upcoming months.
Two questions worth asking at this stage include:
1) Have your goals remained the same since you made your original investment plan?
2) Have you experienced any significant changes in your life (e.g., marriage, job change, loss of a spouse, etc.)?
If the answer is “no” to both questions, we urge you to ignore the noise. Yes, it’s tough to ignore the headlines, and you may feel a sense of urgency to do something. But unless your situation has changed, you are better served to stick with the plan that keeps you focused on your long-term goals.
Please know we’re here for you, ready and willing to answer your questions. If you answered “yes” to either question, please give us a call, and we’ll schedule a time to meet. We want to make sure you remain on the right track and feel comfortable with your long-term plans.