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FINANCIAL PLANNING
... having that trusting and positive mindset can do wonders.
However, this is simply a snapshot in time. Diversification is so important because each of the sectors on the chart often rotate being a top performer. Having a piece of each one is wise for most portfolios.
to a book that I read several years ago called The Power of Positive Thinking by Norman Vincent Peale. It is an older book and I anticipate it will be around for generations to come. That book does an excellent job explaining the importance of being present and living in the moment. There
We have an election coming up in 2024 and it could be one full of drama. A recession is still on the horizon. Inflation is still too high. All of these factors are important to pay attention to, but are not worth letting it interfere with your happiness. I cannot stress enough how important a positive
MINDSET
Developing a discouraged attitude and mindset can affect the life of an investor. It is frustrating to see balances go down. It can be emotional to spend years building up a nest egg and then watch the market drop 10-20%. Why can’t the market always go up? This has to
do with investor psychology. The market can sometimes get out of whack and prices need to adjust - this is normal for the economy.
Life has been busy for me lately. I’m getting married soon and I’m under contract on a home. Recently, I’ve been very stressed and anxious with everything going on. All of this brought me back
is always a discussion about long-term investing and staying disciplined to have a stable financial future. There needs to be a happy medium between staying present and taking the right steps to create a desirable financial future. This all comes back to mindset. Sometimes account values will be way up, other times they will be way down. If you don’t allow your emotions
to get in the way during those times, a sense of peace and happiness can be discovered. Trusting the historical averages and realizing that the market has always recovered is a big first step. The next step would be to understand that there will always be events to make the economy shaky.
mindset is in this crazy world of ours.
The bottom line is that the market will ebb and flow. Getting too caught up in the
downturns can create a pessimistic mindset, which can last through bull markets when the mindset should be positive. Sometimes looking under the hood can bring the realization that things are in good shape. All of my current stresses are coming from awesome things that are happening in my life. All things considered, the stock market performance is in a pretty good spot. That’s not to say things won’t change, but remember, having that trusting and positive mindset can do wonders.
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