Investors: Neither China Nor Or The Dow Will Lose You A Dime!

Neither The China Or The Dow 

Will Lose You Any Money!

by: Brendan Magee

So here we are a little less than a week from the sudden drop in the Chinese Stock Market and the subsequent drop in the Dow Jones Industrial Average. No doubt when the Shanghai Index has dropped by 14.46% and the Dow goes into thousand point swings people will start talking.

With all the hoopla, I wanted to remind people that their fate as investors is and will always be in their hands. The rules for investing no matter market conditions have not changed in 80 years, own stocks/equities, diversify, buy low/sell high.  The decision to follow those rules and allow your advisor to execute those strategies rests solely with the investor. 

Should the investor panic and sell after Monday's sell off, whatever wealth was coming their way will be going to the investor who either held on to their portfolio, rebalanced their portfolio by shifting money from investments that have gone up or held steady into asset classes that went down, or brought outright stocks that went down. Eventually, when the rebound that inevitably comes, the wealth that was lost by the panicky seller will go to the steady and disciplined investor who followed the rules. The loss or gain had nothing to do with what took place in China or the Dow. It begins and ends with the investor.

Isn't it empowering to know your fate is solely in your hands, not faceless bureaucrats. So, turn off the news.There is nothing you are going to see or hear that will have any impact on your financial security.  Go play some tennis or golf. Get some exercise and wait for the tomorrow's crisis.

Brendan Magee is the founder and president of Inevitable Wealth Coaching. With questions or comments go to WWW.Coachgee.com or call 610-446-4322