Resist Urge to Panic about the Stock Market

Please sit down.  Take a deep breath and look at the accompanying chart.

Standard and Poors Jan 1950 - Dec 2015

Standard and Poors Jan 1950 – Dec 2015

 

If you are even remotely good at reading a graph, you know this represents the stock market.  More specifically, it is a graph of the S&P 500—the gold standard for measuring the health of the stock market and the economy as a whole.

Look at the chart closely. What do you see? If you are being honest with yourself, you see that the stock market as a whole has a long-term track record of positive growth.  As a result, if your personal investment portfolio is diversified enough, it will also mirror the positive growth of the stock market.

If your personal investment portfolio is not diversified (i.e. all of your eggs are in one basket), then you are probably asking for trouble.  Get a great advisor and make a change today.

Ben Baxter is editor for Baxter & Friends.  Follow him on Twitter @Ben_Baxter