What will be the next crisis to shock the markets? Syria? ISIL? Terrorist attack? Inflation? HYPER inflation????
How are you supposed to invest wisely for retirement with the world in such a mess?
The reaction of many is to just wait. Wait until things in the world calm down. The problem is things never calm down. The world economy is always threatened by a potential crisis. Since the 2008 market meltdown many have stayed on the sidelines until things “calmed down” and missed strong markets.
If you’re going to invest wisely for retirement, you’ll need to come to terms with your normal fears about the world and the need to work to grow your assets over time. How do you do that? Well, that’s what I try to address each week on this blog and my podcast.
In a recent podcast, I discussed how markets reacted historically to major events. A listener (hi, Josh) asked that I share some of the data. Here is a chart from Dimensional showing how a “balanced” allocation reacted to past major events. Here you go, Josh.
Quick reminder to you dear reader: Don’t take this as a recommendation. That’s silly, I don’t even know you. This is just some perspective.
Question: Have you altered your investment strategy because of a fear of major shock to the economy? Tweet to @roger_whitney