Thursday , June 20 2019
Home / Money / Investments / Investments: Why Your Wall Street Portfolio Is In It For The Long Haul

Investments: Why Your Wall Street Portfolio Is In It For The Long Haul

When it comes to your investment portfolio and stocks, patience is indeed a virtue.

Everyone talks about the rebound in the stock market as a reason for everyone to celebrate but have forgotten, apparently, that when the market tanked in early 2009 the darkest of predictions seemed possible.

A likely jump to pass 17,000, however, doesn’t have everyone—especially those who pulled out of the market for a bit when it was down in 2008 and 2009—breaking out cake just yet. In addition, consumer confidence remains on edge because the unemployment rate remains elevated and the economy isn’t showing any robust growth and job gains like we witnessed in other recoveries.

The market decline in March 2009 to a 12-year low of 6,547 prompted some to remove cash from the market and not risk any more declines to their brokerage accounts. The result? Too many missed out on the gains in the bull market.

“We had some clients that pulled out of the market for a little while and missed some of the gains when they came back into the market a couple of years later,” says Stephen Wright, a financial planner with the Miami-based The Enlightenment Group. “We tried to talk people out of getting out of the market when it went down and tried to encourage them to put more money in. We talked as planners about people will make an effort to go to the store and buy things when they’re on sale or there’s a good sale, but when stocks are on sale when a market declines, people are selling them and afraid to buy more.”

Wright says the only permanent loss people have is when you sell; anything other than that is what people think something is worth and that goes up and down every single day, he says.

“People who stayed in the stock market got back everything in less than two years,” Wright says. “If you stayed in the market, you would have recovered very well, but people who got out in 2009 missed the big run up. That’s what happens with markets. They go up and down, but you stay in them for the long term. In the long term, history has shown you do better in US stocks than you do with bonds or CDs or putting it in savings.”

One thing Wright says he noticed is that the people who were in 401(k)s didn’t make a lot of changes because they make automatic investments every paycheck and have it already determined where you have the money go. People don’t look at it all that much, and those accounts came back quickly.

“Where people did get scared and pulled away was in the non-401(k) accounts such as regular brokerage accounts,” Wright says. “Not only did you have locking in that loss, but you had the tax consequences of that also.”

But even those who kept money in their retirement accounts didn’t benefit to the tune of 150-percent plus that the DOW has spiked since then. The one example out there is from Vanguard, which reports that between 2008 and 2013 the average 401(k) account balance rose by $46,000 from $56,000 to $102,000.

“You have different types of funds—some that are mostly in the US stock market and some that are more global where you have US stocks and foreign that are mostly in certain sectors like Europe,” Wright says. “Some funds that are combination of stocks and bonds and the mix up of the funds in large part determines how it performs. What you saw last year in 2013 was that US stock market did phenomenally well, but bonds were generally down and foreign stocks did OK but not as well as the US stock market and so how the fund performed depended on your allocation among those that affected. But on the flip side, if you have a fund that is 100 percent US stocks or mostly US stocks, it did great last year but you wouldn’t wanted to own that going into 2008. You would have gotten hammered.”

Investing in the stock market—or anywhere, for that matter—is decidedly not an exact science.

Check Also

Reverse Mortgage pros

5 Upsides To An HECM Reverse Mortgage

As you near your golden years, the last thing that you want to have to ...


  1. Clomid Estima Priligy Uk Review Viagra A Partir De Quel Age priligy achat Pyridium 200mg Urinary Burning Generic Lasix

  2. Citrate Generic Sildenafil Viagra levitra super pro Viagra Kosten In Der Apotheke Where Can I Get Ampicillin Quickly

  3. A fascinating discussion is definitely worth comment. There’s
    no doubt that that you need to publish more on this topic, it may not be a taboo subject but
    usually people do not speak about such subjects.
    To the next! Kind regards!!

  4. Propecia Haarwuchsmittel Acticin 30gm Shop Amex Accepted levitra information Notas Con Propecia

  5. Zzpills cialis 40 mg Cialis 20 Mg Effets Indesirables Prix Cialis 100mg

  6. Fabulous, what a webpage it is! This website gives useful facts to us, keep it up.

  7. Cialis Rezeptfrei Forum Farmaci Online Inghilterra cialis prices Cytotec Au Maroc Propecia Finasteride Side Effects Impotence Sildenafil Viagra Pdf

  8. I consider something really special in this site.

  9. Amoxil Chat viagra cialis levitra combo packs A Quand Le Generique Di Cialis Rx Cheap Propecia Brand Name Viagra

  10. I must say, as a lot as I enjoyed reading what you had to say, I couldnt help but lose interest after a while.

  11. Appreciate it for this howling post, I am glad I observed this internet site on yahoo.

  12. I conceive this web site holds some real superb information for everyone : D.

  13. This i like. Thanks!

  14. Good Morning, bing lead me here, keep up nice work.

  15. I conceive this web site holds some real superb information for everyone : D.

  16. Your post has proven useful to me.

  17. Respect to website author , some wonderful entropy.

  18. I conceive this web site holds some real superb information for everyone : D.

  19. Intresting, will come back here once in a while.

  20. Appreciate it for this howling post, I am glad I observed this internet site on yahoo.

  21. I like this article, useful stuff on here : D.

  22. stays on topic and states valid points. Thank you.

  23. Enjoyed reading through this, very good stuff, thankyou .

  24. I must say, as a lot as I enjoyed reading what you had to say, I couldnt help but lose interest after a while.

  25. Enjoyed reading through this, very good stuff, thankyou .

  26. Enjoyed examining this, very good stuff, thanks .

  27. I consider something really special in this site.

  28. I love reading through and I believe this website got some genuinely utilitarian stuff on it! .

  29. I am not rattling great with English but I get hold this really easygoing to read .

  30. Deference to op , some superb selective information .

  31. I must say, as a lot as I enjoyed reading what you had to say, I couldnt help but lose interest after a while.

  32. I conceive this web site holds some real superb information for everyone : D.

  33. Thanks for this web. I definitely agree with what you are saying.

  34. I like this website its a master peace ! Glad I found this on google .

  35. Some truly cool article on this web site , appreciate it for contribution.

  36. Respect to website author , some wonderful entropy.

  37. Good, this is what I was searching for in google

  38. You got yourself a new rader.

  39. Viagra Without Perscription Levaquin In Internet extra super levitra Amoxicillin For Bowel Bacteria Propecia Ciao 1 Mg Ou Acheter Du Cialis Generique

  40. Enjoyed reading through this, very good stuff, thankyou .

  41. As a website developer I believe the content here is truly awesome, regards.

  42. I will immediately seize your rss as I can’t in finding your email subscription hyperlink or e-newsletter service.
    Do you have any? Please let me understand in order that I
    may just subscribe. Thanks.

  43. I am really loving the theme/design of your web site. Do you ever run into any browser compatibility problems? A few of my blog readers have complained about my website not working correctly in Explorer but looks great in Chrome. Do you have any tips to help fix this issue?

  44. Do you have a spam issue on this blog; I also am a blogger, and I was wondering your situation; many of us have created some nice methods and we are looking to
    trade methods with other folks, please shoot me an e-mail if interested.

  45. Hi! I know this is kinda off topic but I was wondering which blog platform are you using for this site?
    I’m getting fed up of WordPress because I’ve had problems with hackers
    and I’m looking at options for another platform. I would be great if you
    could point me in the direction of a good platform.

  46. I get pleasure from, cause I found exactly what I was having a look for.
    You have ended my 4 day lengthy hunt! God Bless you man. Have a nice day.

  47. Good day! I just want to give you a big thumbs up for your excellent information you’ve got here on this post.
    I am coming back to your blog for more soon.

  48. This design is spectacular! You obviously know how to keep a
    reader amused. Between your wit and your videos, I was almost moved
    to start my own blog (well, almost…HaHa!) Fantastic job.
    I really enjoyed what you had to say, and more than that, how you presented it.
    Too cool!

  49. I’m curious to find out what blog system you have been working with?
    I’m experiencing some small security problems with my latest website
    and I’d like to find something more safe. Do you have any solutions?

  50. Hi, i think that i saw you visited my web site thus i came to “return the favor”.I am trying
    to find things to enhance my web site!I suppose its ok to
    use some of your ideas!!

  51. Cialis Bestellen Rezept Online Pharma 24h propecia generika 1mg Amoxicillin Kidney Infection Certified Online Meds Styplon

  52. If you want to obtain a good deal from this article then you have to apply these strategies to your won weblog.

  53. Excellent way of explaining, and pleasant paragraph to obtain data on the topic of my presentation subject,
    which i am going to present in institution of higher education.

  54. Vendita Levitra 20mg Compra Levitra Generico viagra Viagra Ohne Rezept Online Apotheke Shop Augmentin Propecia Cutaneo

  55. Audio started playing anytime I opened this site, so frustrating!

  56. Appreciating the time and energy you put into your blog and in depth information you provide. It’s good to come across a blog every once in a while that isn’t the same out of date rehashed material. Excellent read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.

  57. Thanks for sharing excellent informations. Your web-site is very cool. I’m impressed by the details that you’ve on this website. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my pal, ROCK! I found simply the information I already searched everywhere and just couldn’t come across. What a perfect web site.

  58. Hi! I know this is kinda off topic but I’d figured I’d ask. Would you be interested in exchanging links or maybe guest writing a blog post or vice-versa? My website discusses a lot of the same subjects as yours and I think we could greatly benefit from each other. If you’re interested feel free to shoot me an email. I look forward to hearing from you! Great blog by the way!

  59. I was just searching for this information for some time. After six hours of continuous Googleing, at last I got it in your website. I wonder what’s the lack of Google strategy that don’t rank this kind of informative sites in top of the list. Generally the top websites are full of garbage.

  60. Enjoyed reading through this, very good stuff, thankyou .

  61. Hi, Neat post. There is a problem together with your web site in web explorer, might check this… IE still is the market leader and a large component to people will omit your great writing due to this problem.

  62. Please let me know if you’re looking for a writer for your blog. You have some really great articles and I feel I would be a good asset. If you ever want to take some of the load off, I’d really like to write some material for your blog in exchange for a link back to mine. Please blast me an e-mail if interested. Cheers!

  63. The core of your writing whilst appearing reasonable in the beginning, did not work properly with me personally after some time. Someplace throughout the paragraphs you were able to make me a believer but only for a very short while. I nevertheless have a problem with your jumps in logic and one would do well to fill in those gaps. If you actually can accomplish that, I could certainly end up being impressed.

  64. I know this if off topic but I’m looking into starting my own weblog and was wondering what all is required to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100 positive. Any recommendations or advice would be greatly appreciated. Many thanks

Leave a Reply

Your email address will not be published. Required fields are marked *