Dear clients, investors and friends,
Recent market developments have sparked discussions and raised concerns among investors. Many short-term movements are driven by news cycles, while the underlying fundamentals remain robust. In fact, seasoned investors often use market pullbacks as opportunities to invest at better valuations.
If you’d like to see Veda Financial investment results based on a representative moderate growth portfolio, please https://tinyurl.com/bdh6mrfy to request them.
As long-term investors with 3- to 5-year time horizons and beyond, it’s essential to maintain perspective. While we monitor economic indicators like interest rates and inflation, our focus is on sustainable growth rather than reacting to short-term market noise. Even renowned investors like Warren Buffett acknowledge that short-term moves are unpredictable, and history shows time is the best reducer of volatility, with markets generally trending upward over the long run.
For example, a friend with a $500,000 portfolio in 2007 panicked during the 2008 downturn and sold near the bottom. He stayed in cash for three years, missing the early stages of the recovery, and it took him a decade to get back to where he started. Had he stayed invested, his portfolio could have been worth one and a half times as much by 2021.
Why Staying Invested Matters: Markets trend up over time despite temporary setbacks. Corrections of 20% or more occur roughly every 3.5 years but have always been followed by new highs. Market timing often locks in losses and delays recovery, while missing just a few of the best days can significantly reduce returns. Selling after declines and buying after rebounds risks repeating this cycle.
While downturns can be unsettling, discipline, patience, and a long-term strategy remain the most effective tools for building wealth. Every investor’s situation is unique, so if you have concerns, I encourage you to schedule a one-on-one review.
To connect with an investment advisor, please click here https://tinyurl.com/3ux452bn
Best regards,
Toni DasGupta, Ph.D., MBA
Veda Financial @ Charles Schwab
Individual, Company, IRA, 401K, Trusts
Registered Investment Adviser #173448
Life Insurance, Annuity & LTC Lic. #0I02070
Disclaimer: This letter is for informational purposes only and should not be considered investment, tax, or legal advice. Past performance is not indicative of future results, and all investing involves risk, including the potential loss of principal. Portfolio results shown upon request are representative of a model portfolio and may not reflect the performance of your specific account. Please consult with a qualified financial advisor before making any investment decisions.
