Sir John Templeton, the legendary investor and mutual fund manager, once said, “The four most dangerous words in investing are This Time It’s Different”. As we in Tennessee might say, he was a right smart feller. He supported himself through the depression and graduated near the top of his class at Yale in 1934.
The point Sir Templeton was making is that looking back at the S&P 500 from 1926 to the point where our current downturn began from an all-time high, the market is batting 1000, it has a perfect record of not only coming back but advancing. Trying to “time the market” is an exercise in futility. Investors tend to believe it is “different” because they are experiencing it then and there, but the markets have a long history of pullbacks and comebacks.
Are you thinking this time it’s different? Having an advisor who knows your financial plan and talking with him/her during times like these could help you to make sound financial decisions. We’re here to help.