The equity markets provide investors with opportunities to build wealth, but not without risks. Before putting any money into the public markets or any investment vehicles, you should take the time to consider your long-term goals, risk tolerance and time horizon. When these factors are accounted for in a well-thought-out strategy, you may be better prepared to ride out market swings and avoid the potentially devastating consequences of making emotionally charged financial decisions.
The problem with these knee-jerk reactions is that they are based on emotions rather than facts. They represent fears, anxiety, greed, overconfidence and desires rather than goals. Successful investors, however, understand that the movement of the markets is based on long-term historical trends and short-term influences. They are practiced in the art of self-control and keeping their eyes on their long-term investment and retirement-savings plans. When market losses mount, they do not cash out. Instead, they understand that those short-term losses are only on paper, and, depending on the assets in their portfolios and their time horizons, they view those market dips as an opportunity to buy.
Sticking to a long-term investment strategy is difficult, especially amid changing economic factors and wide market swings. However, maintaining diligence and staying on course may be best accomplished with the support and insight of experienced financial advisors. They understand the importance of a diversified investment portfolio that meets an individual’s goals and time horizons and may help reduce the impact of market volatility. The professionals with Provenance Wealth Advisors work with individual investors, families and businesses to navigate complex risks to build and preserve wealth for multiple generations.
About the Author: Scott Montgomery is a director and financial planner with Provenance Wealth Advisors (PWA), an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs and a registered representative with PWA Securities, LLC. He can be reached at the firm’s Ft. Lauderdale, Fla. office at (954) 712-8888 or info@provwealth.com.
Provenance Wealth Advisors (PWA), 200 E. Las Olas Blvd., 19th Floor, Ft. Lauderdale, Fla. 33301 (954) 712-8888.
Scott Montgomery is a registered representative of and offers securities through PWA Securities, LLC, Member FINRA/SIPC.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
Any opinions are those of the advisors of PWA and not necessarily those of PWA Securities, LLC. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of PWAS, we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional. Prior to making any investment decision, please consult with your financial advisor about your individual situation.
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UPDATED on November 4, 2024