Just Sit Back and Take It

Alistair Evans forwarded this along from UBS:

I am writing further to the recent market volatility that is being reported to you on a daily basis by the news media.

Sharp market declines are understandably unsettling for all investors and we want to assure you; as your advisors; we are monitoring the situation closely. We will keep you informed of any changes that we deem necessary in order to achieve your financial objectives.

Stock markets go through periods of uncertainty and can tempt clients to amend their long term objectives usually crystallising a loss. Stock market volatility does tend to be short lived; therefore most experts agree that investors are better off remaining invested during these unnerving periods.

Sharp market falls are more often than not followed by large gains and vice versa, so an investor who attempts to anticipate the troughs and peaks can be caught out. This can have a huge impact on long term returns. Missing the best days in the market can dramatically affect your returns, one study has revealed that over the last 15 years, by missing the best 40 days you can impact your return negatively by in excess of 10%. Which when banks are offering next to nothing in interest is quite considerable.

Our sentiment for now is to remain invested and should you have any questions please do not hesitate to contact us. We will be happy to review your current financial situation, your financial goals and assist with future strategies to achieve those goals.

Thanks Mr. UBS! With calming sweet nothings like those whispered in my ear…now that the coast is clear I can get back to watching Snooki get drunk!

Note: Dow hit 11,107.19 on May 13, 1999 and hit 11,143.31 on August 11, 2011. What did they say on CNBC between those two data points? I forget.

3 thoughts on “Just Sit Back and Take It

  1. Wirehouses generate a considerable amount of fees from wrap accounts, C shares, managed accounts, etc,…you better believe they want and need to keep that money “in the market”…one of the biggest conflict of interest businesses in the world…

    they have never had a sell discipline and never will…

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