There’s always something to worry about when it comes to the financial markets.
Either it’s the fear of higher taxes, excessive government debt, terrorist attacks, the threat of war, a looming recession, the decline of the dollar or even the collapse of the entire financial system as we know it. Or maybe it’s a concern that the entire system is rigged against the common man – a very valid concern, by the way.
But during times of panic, for those that keep calm, there is usually an opportunity to make money.
After all, investors have been facing crisis after crisis since the great Tulip Bubble that took place nearly 400 years ago – yet markets (and investments) keep marching higher.
Playing on the famous British WWII propaganda poster, instructing Londoners to “Keep Calm and Carry On”, we encourage you to Keep Calm and Invest.
A well-diversified portfolio of stocks, bonds, and other non-correlated asset classes has been academically shown to improve portfolio returns and reduce volatility.
Rather than worry about the current state of the economy, politics and other threats (most of which are greatly exaggerated by the media), investors should focus on creating and maintaining a portfolio that suits their long term needs and risk profile.
So don’t let your emotions get in the way of your investing and stick to your own plan – you’ll sleep better at night and in the long run, you’ll end up with more money than if you had been scared out of the market and had all your cash in your mattress.
This blog is maintained by Nirav Desai and Adi Garg, principals at Qubera Wealth Management.
Qubera Wealth is a Registered Investment Advisor, based out of Los Angeles, California. We are fee-only advisors and fiduciaries to our clients. Helping our clients maintain a calm view of the investment process and not succumbing to excessive fear or greed is one of our goals.
None of the advice provided in this blog should be taken without consulting your financial advisor – everyone’s situation is different and you should not consider this to be personal advice. Please read our disclaimer for more information.