This is a conversation (or something very similar) that many financial advisors are having this morning:
Client: Hey I just saw that the Dow and S&P are making new all-time highs, why am I not fully invested in stocks?
Advisor: Well, a few weeks ago you said you wanted to be all out of stocks because of BREXIT, the potential for full scale escalation in the Middle East, China slowdown, U.S. economic growth stalling, and global warming.
Client: Yes, but stocks are making all-time highs, why am I not more invested in stocks?
Advisor: Well, you are also retiring in two years so we agreed at the beginning of the year to take some risk off the table and prepare for your income needs in retirement.
Client: Right, but why am I not more invested in stocks?
Advisor: Ok, so you want me to raise your equity market allocations?
Client: Yes, stocks are making new highs.
This is what the market does. It causes people to do exactly the wrong things at exactly the wrong times because the fear of missing out is simply too much for most people to handle.
“Be fearful when others are greedy, and be greedy when others are fearful.” ~ Warren Buffett
DISCLAIMER: The work included in this article is based on current events and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.comfor important risk disclosures. It’s your money and your responsibility.