Reasons to get spooked (in a fun way!) this Halloween:
- Trick or treating
- Scary movies
- Haunted houses
Investing, on the other hand, should never be on this list of spooks. A wise investor is a calm and patient investor. Focus on the season’s festivities instead of worrying whether the ghosts and ghouls will get your money in the markets.
Don’t allow yourself to get “spooked” by market noise – stick to your strategic financial plan. Trying to time the markets means that you can miss out on potential upside, not just downside. The vast majority of market returns occur within a small minority of the time. If you are not invested during that short window, your wealth could miss out on the potential for significant growth. You should be investing with IQ, not EQ (emotion quotient). Smart investing is about strategizing for the long term and positioning your portfolio to grow over time by investing in a well-diversified basket of stocks, bonds, and commodities. Having diverse ingredients makes for a more powerful potion, and it must be given enough time to brew by investing with an appropriately long time horizon.
Don’t fall under the dangerous spell of trying to time the markets. With a smart strategy and the discipline to stick to it, your wealth is well-positioned to work just as hard for your as you did to earn it.
This way, the real scare on Halloween can be your costume, not your finances.