Will the Dow hit 13,000?
Will the Dow hit 13,000 this week?
All indications are is that it will. Anytime the market hits a high mark such as 13,000, there is cause to celebrate. Afterall, we all remember the low of the market on March 9, 2009, when the Dow was creating widespread panic as it was bottoming out under 7,000.
What have investors learned over this 6,000 gain in the market? As a Coach, over the last 3 years I’ve heard it all. Unfortunately, none of the stories I heard where market related- they were mentally, emotionally, irrationally, and doom & gloom stories of scarcity…not of abundance.
As the Dow took a downturn, investors where seeking a ‘safe’ haven. They had to ‘get out’ of the market before they lost any more money. Stories of CD’s and Annuities became a ‘hot’ sale to a scared investor. Investors often looked to protect the downside, rather than maximize the upside potential. How silly those investors look now. They locked in their losses, and as the market rebounded, lost all the upside gain. Their ‘fear’ actions lead to a double loss!
Why do investors continue to make silly decisions?
Often times, it’s because they don’t have an investing plan, or an investment policy statement.
Investors don’t have Coaches. Most investors have brokers, who get twice as scared as they do because now, their salary is on the line, which causes them to make trades, sell commissioned-based products, all at the expense of the investor. Yes, brokers are just as quilty of creating investor chaos. Often times, a broker would rather keep you happy than tell you the truth, like a Coach.
The fear of loss is often times greater than the excitement of gain. Short-term focus can destroy an investors peace of mind.
Investors don’t know history. History tells us that the market has gone up 100% of the time! While we don’t know if the next 20% movement will be up or down, investors should invest as if it’s always going up, and buying.
There are other reasons as well. And I’m going to go over them on March 19 at Liberty Hall. This is going to be a great event and I encourage you to be there. If you haven’t let me know that you’ll be attending, do so now. Give me a call, or shoot me an email, to let me know you’ll be there. It’s going to be good 🙂