It’s not about Timing, it’s Time in the Market

March 18, 2014

With the strong performance of equity markets and the suggestion (which I have initiated as well) that markets are due for another typical and average market correction, a few clients have asked how we can side step the decline and jump back in at the bottom.

My response is always the same, “It can’t be done – at least not with any certainty.” The article linked below is by our friend Nick Murray, a 40 year investment market veteran, who sums up his thoughts on market timing with this quote, “The universal inability to time markets with any precision is perfectly irrelevant to investment success.”

If you’ve had any thoughts about trying this strategy, or wonder why it’s irrelevant to investment success, please give this a read:

Not About Timing, but Time in the Market

Identify Your Hierarchy of Life Values

Walt Disney said, “When your values are clear, your decisions are easy.”  Values are enduring beliefs – the things we hold as more important in life.  Being very clear as to what they are and their importance to us can help us with our life decisions.  This short article from Money Quotient shares a few thoughts on the importance of prioritizing your values. 

In The Thinker’s Way, author John Chaffee describes the word “value” as “the general term we use to characterize anything that possesses intrinsic worth, that we prize, esteem, and regard highly based on clearly defined standards.”

Chaffe further explains, “you may value your devoted pet, your favorite jacket, and a cherished friendship, each based on different standards that establish and define their worth to you.” In other words, we can think of our values in terms of what we treasure the very most in our lives.

Values can also be thought of as specific attributes or guiding principles that we highly revere such as “integrity,” “loyalty,” and “generosity.” Values are also the personal motivators that consciously and unconsciously influence how we behave, the decisions we make, and the degree of happiness we experience. These values vary from person to person, but include such intangibles as recognition, challenge, prestige, harmony, security, freedom, community and creativity.

Once you have clarified your own set of values, the next step is to define your priorities. In a nutshell, your values are what you identify as being most important to you and your priorities are those same values placed in a ranking of importance.

In Smart Talk for Achieving Your Potential, Lou Tice states that each person who chooses to be centered and strong needs to identify their own hierarchy of values: “Sort out for yourself what the essentials are, why you are on earth, what is important to you, and what your life is worth.” Tice also recommends using affirmations and setting goals “to bring more of those things that are important to you abundantly into your life.”

Therefore, think of your values and priorities as an internal compass that guides your choices in life. When your decisions and behavior are aligned with your values and priorities, you will experience greater life satisfaction.

Reprinted by permission of Money Quotient, NP

Mastering the Art of Self Renewal

“When you have a dream and a plan working together in the construction of a life chapter, you have a ‘mission,’ a circumscribed purpose that defines your use of time and space for the duration of this particular life chapter.  People with a mission know where they want to go.”  Frederic M Hudson – Mastering the Art of Self Renewal