The last few months have seen some of the most volatile shifts in the stock market in more than a decade. On February 12, 2020, the S&P 500 reached a historic high of 3,386. It was a great time for physicians, doctors, and other healthcare professionals in Boise, ID, and the surrounding areas, to be invested in the stock market.
During the following forty days, the coronavirus spread across the world and disrupted life as we know it. Everything changed drastically, including financial markets. After its historic high in February, the S&P 500 plunged to 2,237 on March 23, 2020. It was a drop of 38 percent in just forty days.
Since then, both the US and international markets have staged a remarkable recovery, with the S&P 500 surpassing 3,232. However, there is no guarantee that another market drop won’t happen in the near future.
Times like these might make you want to pay your physician wealth management advisor a visit and tell them to take everything out of the market in the interest of avoiding volatility. Let me be very direct: DON’T! Almost without exception, it is better to stick with your long-term plan.
Time in — Not Timing — the Market
You might think that timing is everything when it comes to investing in the market. You would be wrong. The time you have been invested in the market is far more crucial than the timing with which you invest. Over the long term, a successful strategy takes advantage of market increases as they occur and missing a few key days in the market can hurt your investment returns and dramatically impact your long-term goals. As an example, look at this graph from Standard and Poors:
Remember, “This Too Shall Pass”
The stock market has a very predictable long-term history. As tough as it is to calmly watch your accounts drop in value, history has proven that the market rewards the long-term investor.
Standard and Poors has tracked market drops since 1950; look at what they found.
Today Is the Best Time to Invest
On average, the market goes up every day. Without the ability to predict the future, that means that, usually, we lose out by waiting to invest. We can help you invest your money in the most efficient and evidenced-based methods.
At IMA Financial Services, we are looking out for your long-term interests. Take advantage of this historic investment opportunity by speaking with one of our medical financial advisors about fine-tuning your investment plan.
Contact us today at 208-504-1736 for a no-cost consultation at our Boise, ID, office or browse through our site to learn more about our services.