If the recent global market reaction to Brexit did not teach us once and for all that Timing The Market is not a very good strategy, then nothing will ! 

We hope you all listened to our prudent advice in the special edition of RAA Monthly on June 24th and did not panic.  Those who maintained their well-designed plan are now ahead of the game and looking at new highs.  Those that strayed from their plans could have done some irreparable harm to their portfolios and the probability of reaching their financial goals.  

Here is an extreme example:

Assume you purchased an S&P 500 index fund at the close of the market on Thursday, June 23rd in hopes for a positive reaction to what most thought was an obvious decision that Great Britain would remain in the EU.  A couple of hours later you would have learned that Great Britain had basically shocked the world...global market indicators began to crater !  The market dropped 3.5% on Friday.  You held on hoping things would change over the weekend.  Nope !  Monday the market dropped another 2% and you sold because you couldn't take it anymore.  Guess what?  On Friday, July 8th (only 8 trading days later) the S&P climbed back above its pre-Brexit level.  Now, as I type this the S&P is 2% higher than June 23rd !  You are down 5.5% as opposed to up 2%.

Lesson leaned we hope.

If you are already a client, we hope you were calmed by our approach through the Brexit crash.  We saw less volatility in our portfolios and our recovery was achieved quicker.  The strategies we implemented earlier in the year worked.  

If you are not a client and would like to learn more, please give us a call and let's set up a time to talk about how we can help you.

Until next time, remember that it is TIME IN THE MARKET not TIMING THE MARKET that ultimately helps us achieve our financial goals.