In a world where interest in speculative investments, trading frequency, and government assistance are at all-time highs, so are home prices and stock market levels. Is this all a big coincidence? My opinion – it’s not a coincidence at all.
Case and point – as you can read in the opening paragraph on this week’s Weekly Market Review, forecasters missed the new jobs creation estimate by more than a mile…figuratively speaking, they missed it by 100 miles. In reality, new job creation fell way short of estimates, terrible economic news which means the stock market will trade down correct? Nope, it paves the way for the Federal Reserve to grease the wheels a bit more, feeding the addiction the stock market has to stimulus and record low interest rates.
Don’t get me wrong, I love the market hitting record levels, it certainly makes investors happy, but what is next? Detoxification for an addict of drugs or alcohol is a miserable and painful process. Concerns of what our economic detoxification to cheap money and heavy handed government assistance cloud the future.
Given the interesting circumstances above, keeping some 101 principals for successful long-term investing is paramount for investors. Take a couple of minutes and review this tried and true list from JPMorgan by following this LINK. These cornerstones for investors have and will continue to elevate them above the noise and concerns over the long-term.
As always, we hope you find the Weekly Marker Review both informative and interesting. Have a nice week.
Trevor N. Coe, CFP®