Here's some great news for investors. In July, the Dow Jones increased 8.6%. That's the best July performance since 1989! It's also the best monthly performance since October 2002.
The S&P 500, a listing of the 500 largest companies in America, was up 7.4% in July. That's the best July performance for the S&P 500 since 1997. Not only that, it's up 46% since its low point in March 2009.
What can we learn from this?
When investing, it literally pays to keep a cool head and stick with your long-term goals. If you followed Chicken Little's advice and cashed out your investments, you would have missed these great gains. Successful investors weather through the bad storms by sticking with their plans. You should do the same.
The importance of investment planning
A solid investment plan helps many investors make smart decisions during tough economic times. Without a plan, investors find themselves making rash decisions. They become reactive instead of proactive. All investors need a well thought-out plan. That's why it's important to have a trusted investing professional on your side to help you create one.
Staying smart
All investors are welcoming the significant gains in July. But it's just as important to follow your plan during the good times as it is during the low seasons. Remember, the market can be fickle. Don't rush into the market or a particular fund just because it had a great month or two.
The Tip:
If you're out of debt and have three to six months of expenses saved in an emergency fund, you should be investing. If you keep postponing investing for your retirement, you will never be able to retire. Remember, don't make a rash decision because the market does ebb and flow. Get a financial advisor to help you get into the market the right way.
An Advisor You Can Trust
When you're ready to start investing, make sure to find an investing professional with the heart of a teacher. Contact an investing endorsed local provider (ELP). ELPs are researched and hand-picked by Dave's team. Plus each ELP's performance is reviewed every month.
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