Invest With Your Head, Not Your Emotions

The investment year of 2014 has had a very rough start.  Your January investment account statements are as cold as the Minnesota temperatures outside.

Several economic and employment concerns are causing the U.S. stock markets to slow down. Now is a good time to get back in touch with your stock market investments.

Be careful not to minimize the stage of the U.S. stock market cycle. The hoped for U.S. economic recovering has been very slow to take hold.  The continued growth of the U.S. stock market averages is at risk.

You don’t need to worry about a total stock market crash soon.  But you do need to make sure that the stock market risks you are taking now are in line with your emotions.

You are required to fully participate in the next great stock market crash.  You have a choice.  You can choose to keep the majority of your stock market gains over the last few years.

It is a natural reaction to feel anxious when the stock market headlines spell trouble.

Talk to your financial advisor now if you have money to invest or if you are concerned about the near-term direction of your stock market investments.

If you manage your own stock market investments, have the same conversation with yourself.  Review the current facts and figures regarding the U.S. economy and stock markets.

If the U.S. economy continues to slow down, so will the stock market.  The employment levels will not improve.

You are smarter than you think you are in managing your stock market investments.  Just remember to use your head and not your emotions.

Ric Lager
Lager & Company, Inc.