So, here we are, officially halfway through 2024. Stocks – at least as measured by the S&P 500 – are up by solid double-digits percentagewise, continuing the big rally that began in 2023. Market volatility has been unusually low. And the world’s largest economy continues to chug along, despite showing signs of slowing.
It’s typically in times like these that investors begin to worry – not about what’s happening, but about what might happen in the months ahead. It’s human nature to wonder when good news might become bad news, when growth might turn into recession, when gains might turn into losses.
I mean, don’t you have a sneaking suspicion that the second half of 2024 will be more challenging than the first half?
It’s natural to be concerned about the future. The mistake many investors make, however, is acting on those concerns. The market is near all-time highs, so let’s sell stocks before they go down. We’re afraid of who might be in the White House a year from now, so let’s abandon our long-term investment plan.
As I reminded more than one client this week, fear is not an investment strategy.
The alternative is recognizing there are always things to be concerned about – real and imagined – but to trust that most of those things will work themselves out over time, challenges will be met, and problems will be solved. Good businesses will continue to adapt and innovate, and the financial markets are likely to continue rewarding them in the long run to the extent they succeed.
The hardest thing you have to do is simply to let it happen.
There are plenty of reasons to be anxious about stock prices – but our chief strategist reminds us that the greatest risk of stocks might be not owning them. (Reading time: 4 minutes)
It’s easy to get carried away when times are good – use these 11 investing truths to help keep you from getting ahead of yourself. (Reading time: 6 minutes)
When stock prices grow faster than underlying earnings, it’s often seen as a warning sign. But how reliable is this trusted market indicator? (Reading time: 4 minutes)
America is swimming in debt, threatening economic growth. Are we paying too little in taxes – or is the government spending too much money? (Reading time: 3 minutes)
Seniors are getting hit hard by rising prices – and most of the increase is for the things they need. (Reading time: 1 minute)
The latest monthly inflation report uncovered several items that seem to be bucking the trend. (Reading time: 4 minutes)
Remember paying for texting and long-distance calls? Here’s a list of things you should now be getting for free. (Reading time: 7 minutes)
This retiree wouldn’t swap his pension – but he makes a strong case that today’s workers aren’t taking full advantage of the benefits 401(k)s offer. (Reading time: 4 minutes)
Converting traditional IRA assets to a Roth IRA is a taxable event – and if you’re not careful, it can trigger higher Medicare premiums. (Reading time: 2 minutes)
What do you do if you lose your job within five years of retirement? (Reading time: 7 minutes)
Words to the Wise
“The chief hazard of a careful common stock program is not that it may bring unexpected losses, but that its profits will turn the investor into a speculator greedy for quicker and bigger gains - and therefore headed for ultimate disaster.”
– Benjamin Graham
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