Yeah, there are some crazy things going on in the world right now! So, why should we put our money at risk by owning stocks?
The reality is that there are many options for where to put your money and every one of them carries a risk!
Sometimes when markets are volatile, people get nervous and have a gut reaction to take their money out of stocks and go to cash in order to avoid ‘risk’.
This is understandable, after all, the money you have accumulated represents your blood, sweat and tears.
We have to remember that one of the biggest reasons we put our money at ‘risk’ is because we have to outpace the destructive power of inflation. Over the course of 20 years, purchasing power is reduced by half! Half!
Historically, stocks have been one of the best and most consistent hedges against inflation. Yeah, sometimes they are volatile but given an investment time horizon of more than a few years, stocks usually deliver. Especially when they are part of a diversified investment program that rebalances among the different asset classes regularly.
Helping people understand this and invest for their future is what we do! If you’d like to learn more, come see us!