/ by Don Connelly / Investing Wisdom / 1 comment
There are things we know and there are things we don’t know. A first thing we know is that every single time the stock market has gone down, it has come back.
A second thing we know is that every single time the market has gone down and come back, it has gone on to set new highs.
And, a third thing we know is that a perplexingly large number of investors lose money in the stock market, despite knowing the first two things.
What we don’t know is what the market will do tomorrow.
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In this category you will find blog posts with tips and shared wisdom about investing. Some posts are from Don Connelly’s experience in general and others are prompted by real-life people questions to Don.
Empathize, Don’t Sympathize
/ by Don Connelly / Investing Wisdom / 0 comments
There is never a convenient time to invest. The market is too high, the market is too low, we need a new kitchen first and a million other reasons are readily available. The toughest investment decision every prospective investor faces is the decision to do it. This is where you must play bad cop.
A big part of your job is getting people to do what they don’t always want to do.
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Play The Cards The Market Deals You
/ by Don Connelly / Investing Wisdom / 1 comment
There are things we know and there are things we don’t know. A first thing we know is that every single time the stock market has gone down, it has come back.
A second thing we know is that every single time the market has gone down and come back, it has gone on to set new highs.
And, a third thing we know is that a perplexingly large number of investors lose money in the stock market, despite knowing the first two things.
What we don’t know is what the market will do tomorrow.
Read more
Client Goals Are Not Reduced by Falling Markets
/ by Don Connelly / Investing Wisdom / 0 comments
The biggest challenge every investor (and, actually, every Advisor) faces is staying fully invested in the face of bad news. It’s only normal to want to escape danger. Unfortunately, fleeing danger means timing the market. The stock market is too fragmented to successfully time over an extended period. In too many ways, tactical asset allocation is churning without the commissions.
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Successful Investing Takes Time, Skill and Good Luck
/ by Don Connelly / Investing Wisdom / 0 comments
How would your client react if you suggested retaining a money manager with no experience? Better yet, how about one who isn’t licensed to manage money? Better yet than that, what if this money manager has never had a client? Your client would be his first. Out of the question, right?
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To Not Invest Is to Go Broke Safely
/ by Don Connelly / Investing Wisdom / 0 comments
Bertrand Russell said to conquer fear is the beginning of wisdom. In order to trust you with his or her money, a client must, if not conquer, at least control his fear. Explain to your clients that there are five ways to reduce risk.
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People Are Often Over-Diversified and Don’t Know It
/ by Don Connelly / Investing Wisdom / 0 comments
Very rarely do I meet a client with a properly diversified portfolio. As much as we preach tactical asset allocation, you’d think people would be savvy about diversification.
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