Last week I received a call from a very concerned client. He was talking to a friend who told him that the stock market was about to crash. He had heard it from an expert on television and wanted to know if I had heard that the crash was coming! Also, he wondered, "What he should do with his account?"
I explained that no one knows with absolute certainty where the market is going next. The stock market is essentially a giant auction. Everyone has an opinion on whether or not the values are fair. Some think they are too low, some too high and some just right.
Just because the market is hitting all time highs that doesn't mean that it has to go down. Regardless of where it is at in the cycle, it will do one of three things. It might go up more, may move sideways or could go down. The only thing that is guaranteed is that one of those three options will occur.
At Paragon, we go to great lengths to position our portfolios in front of the path that our analysis shows the market is most likely to go. We are right more often than we are wrong, however, unfortunately we are not always right.
So how do you invest and keep your sanity? You control the variables that you can control and you don't worry about the others. One variable you can control is whether or not your risk tolerance is set properly. We also call this your "investment comfort level". If you are invested according to your appropriate investment comfort level then you significantly increase your potential for long term success.
If you haven't checked your Investment Comfort Level lately then I would suggest you take the Risk Tolerance Survey on our website. Click here to take the Risk Tolerance Survey. After you take the risk tolerance survey - then verify that your investments match your personal investment comfort level.
This is one of the most useful exercises you can do in order to make sure you are invested the way you should be. Call or email us if you have any question whether you are invested appropriately.
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.