The Best Time to InvestApril 10, 2014
What are your clients worried about today? Crimea? China? Emerging markets? U.S. markets? Too much precipitation in the east? Not enough rain in the west? The price of eggs?
As a confident, knowledgeable Advisor, you know that there is always something for investors to worry and fret about. Fortunately, you are able to step back, take a longer-term perspective and ignore the noise. Right? Right?
But if you are looking for a way to help your clients focus beyond the headlines and gain perspective, consider emailing them Loring Ward’s new video, “The Best Time to Invest.” (You can also embed it on your website).
In just three minutes, the video shows how $1 invested in the total U.S. market grew from 1927-2013—as well as what was in the headlines in Time Magazine. As the video validates again and again, short-term news events generally have little long-term effect on the market’s continuing growth.
Over this period, the U.S. went through 15 recessions or depressions, two world wars and any number of crises big and small. Yet $1 invested in 1927 grew to $4049 by the end of 2013.
That’s the power of free markets powered by human innovation.
Click here to watch the video.
Source: Fama/French Total U.S. Market Index – provided by Fama/French Center for Research in Security Prices (CRSP) data. Includes all NYSE securities (plus Amex equivalents since July 1962 and NASDAQ equivalents since 1973), including utilities. Hypothetical value of $1 invested at beginning of 1927 and kept invested through December 31, 2013. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment.
Stock investing involves risks, including increased volatility (up and down movement in the value of your assets) and loss of principal.
Investors with time horizons of less than five years should consider minimizing or avoiding investing in common stocks.
Indexes are unmanaged baskets of securities in which investors cannot directly invest.
Past performance is no guarantee of future results.
IRN R 14-142 (Exp 3/16)
Sign up to get email updates with our latest blog posts