Most Minnesota stock market mutual fund investors don’t have an investment management strategy in place for a declining U.S. stock market environment.
Buy-and-hold always works in a good stock market. The problem becomes buying-and-hoping on the way down in a bad stock market.
Mutual fund investors mistakenly believe that their investment advisors and mutual fund managers will protect their stock market gains. Numerous articles, academic studies, and real life horror stories have all concluded that is not the case.
Individual investors don’t have the time to pay close attention to stock market risk levels. Life gets in the way of making the hard investment management decisions.
Ask your current investment advisor to articulate a stock market principal protection strategy. If you manage your stock market investments, you should give serious consideration to a similar strategy.
The U.S. stock markets will at some point take a turn for the worse. Protecting your recent stock market gains will then become more important than hoping for higher prices.
The financial media telling individual stock market investors to “hang in there.” History will show that is not an investment management strategy.
Most of my individual investors are in the middle of their working careers. Or they are very close to retirement. They can’t afford large stock market losses like 2008-2009 so late in their working career. Another potential for 35-50% stock market losses would keep them awake at night.
How much of your hard earned stock market gains are you willing to give back before you can’t take it any longer?
Now is a great time to learn from your past stock market investment management mistakes. Protect the stock market gains that you have.
Most stock market corrections take place when professional investment advisors are the most optimistic. Have read and heard about that stock market optimism lately?
Ric Lager
Lager & Company, Inc.
