We are in a historic time period of uncertainty around the world. If David Letterman made a Top Ten list of the “Biggest Things To Be Worried About,” the upcoming Fiscal Cliff in the U.S. would surely make the list.
Minnesota stock market investors hear time and again that the stock markets are cyclical and that there is nothing that they can do to change that fact. This state of mind is the main reason for popularity of the buy-and-hold investment strategy.
Now is not the time to be passive and uninvolved in the investment management of your stock market assets. There is too much uncertainty in both the U.S. Government and U.S. economy now for that investment management strategy to be successful.
The buy-and-hold investment strategy offers the hope that your stock market investments will be worth more than the price you paid for them if you hold on to them long enough. The truth is that the buy-and-hold investment management approach has been proven false time and time again over the last few years.
There are no guarantees that a pot of gold will be waiting for you at retirement just because you employ a buy-and-hold investment management strategy.
Now is the time to take back control of your stock market investment destiny. Any stock market investments that you own now have to reflect the current level of risk in both the U.S. stock markets and the U.S Government legislative negotiations.
As you have some down time over the holidays, reconsider how much risk you are willing to take now with you current stock market investments. To remain fully invested at all times may not be in your financial best interest during these uncertain times.
The U.S. economy may have to go over the Fiscal Cliff in order for things to change in Washington, D.C. But your stock market investments don’t have to be taken along for the ride.