Are you prepared for a bad stock market?

Hi, I’m Dave Shepherd with Shepherd Wealth and Retirement. I just want to talk to you about something very quickly today that might be one of the most important decisions you ever make as an investor and   it really has to do with some things that have happened in the past, and I just want to make a point here about that. If you take and look at an investor’s life before 2000, most of us really thought the market was just straight up. And it was, for the most part, a couple bumps here and there. But what we’ve had since 2000, is actually now more like this. We actually had two market pullbacks, where we lost almost 50%, twice, and actually took 12 years to get back ahead of where we were in 2000.

So since 2000 we have a different attitude, a different experience, maybe, a little bit something different to think about than we did before 2000, when markets were pretty much straight up. Interest rates were coming down, everything was awesome. The economy was awesome, everything else. I read a quote recently that I thought was really important for us as investors, and you might like it too but it said that the two best feelings for an investor are, number one, being in the market when it’s going up, and number two, being out of the market when it’s going down.

So I think one of the most important decisions we need to make, going forward– what you need to make going forward as an investor– is it OK to get out of the market from time-to-time and go into safe assets in the next market decline? Is that a good idea or not? Because at some point, the market has its ups-and-downs, a lot of people think that we’re going to go, who knows, to the moon from here, if you will. And that’s a possibility. But we have learned that it’s very painful to sit in down markets.

So the question is, is it OK to get out of the market and do something different, to try to preserve your assets if the market declines again? Or should you just sit and do nothing in a prolonged market downturn again, like happened before? So it’s a question for you to think about, a decision you can make on your own, and with everything else that I would suggest and do, it’s better to have a plan and a thought-out way to do this, if you’re gonna do something different than just ride this market out, whatever happens in the future.

Thanks so much for taking the time today, really appreciate it. Let me know if you have any questions or comments.

I would love to hear from you.

About Dave Shepherd, ChFC, CFP®

Dave is the founder of Shepherd Wealth & Retirement in Tucson, Arizona. Dave is a Chartered Financial Consultant (ChFC) and Certified Financial Planner™ practitioner (CFP®). Have a financial question? Click Here to contact Dave Shepherd.

Investment advice offered through Shepherd Wealth Group, a Registered Investment Adviser doing business as Shepherd Wealth & Retirement.

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