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Wednesday, September 07, 2016

On Staying Invested in this Bull Market

"The reports of my death are greatly exaggerated." ~ Mark Twain

Despite the constant negativity from pundits, this bull market, which is the second longest at 7 -1/2 years, keeps grinding upwards.  This has been the most unloved bull market ever.   However, since March 2009, the best strategy has been to be invested in a diversified equity portfolio or a total market index and to add funds during any pullback or correction.

I, unfortunately, haven't been that brilliant.   Only about 25% of our funds are invested in equities,   However, I have been good about keeping that portion mostly invested, with only occasional instances of small profit taking.  Keeping the percentage of funds invested low had been worth the lost opportunity cost.  I have low anxiety about the funds that are invested, and therefore can sleep well at nights.

Despite warnings about the imminent end of the bull market, I will continue to keep about about 25% invested.   When the bull market does end, and it will, I will be able to bear the loss and be prepared to invest in the inevitable recovery.

For more on The Practice of Personal Finance, check back Wednesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

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