Maintaining Conviction: How Have Long-Term Investors Been Historically Rewarded?

It certainly has been a tumultuous couple of weeks since the COVID-19 pandemic shocked the global markets. While the past few weeks have calmed down relative to March, whether or not we have made it through the tunnel of volatility in the market is anybody’s guess. During these calm respites, we should take some time to think about the recent rollercoaster ride and how we have handled it emotionally.

Despite the emotional volatility we may experience during times like these, ultimately, the long-term investor will prevail. Market history has proven this time and time again. While erratic events will occur in the market, we should not deviate from our long-term goals of success. Below are just few market events to reflect on. Consider the following: How did you feel as it was occurring? Did you think about where you would be financially once it was over? How do you feel about it now?

The key takeaway from this is that eventually we will make it through this uncertain period. We should view this as a time to become better investors and maintain the discipline that has gotten us this far. One should rely more so than usual on the cornerstone that is one’s financial plan as this can give you the invigorated confidence to keep going forward.

Weingarten Associates is an independent, fee-only Registered Investment Advisor in Lawrenceville, New Jersey serving Princeton, NJ as well as the Greater Mercer County/Bucks County region. We make a difference in the lives of our clients by providing them with exceptional financial planning, investment management, and tax advice.