Will this be the year the stock market goes down again?

Will this be the year the stock market goes down again?

Most of the predictions are out about 2015 US stock market performance. What do they say you ask me? The majority I’ve read say the stock market, meaning the US stock market, will be up this year. Last year the vast majority said the market would be down. They were wrong.

So will the majority of US stock market predictors be wrong again this year? I have no clue. Good thing you’re not paying me for my stock market predictions.

Here’s what I do know. The US and Non-US stock markets will go up and down all year long. They will be surprised along with you and me. After all, the stock market is the sum of all people’s notion of where business is going and whether they want to own shares of companies or not.

Now, over any long period of time the markets have always returned a gain for investors. Sometimes it took five to ten years to deliver a return on your investment. That’s the nature of giving money to companies in a diversified investment strategy.

So what can you do no matter what the stock market does this year to make sure you obtain long-term gains so you can achieve your financial goals?

1. Invest consistently over the year on an automatic basis.
2. Make sure your not over-weighted or under-weighted too much in any one sector of the market.
3. Keep an eye on the internal costs of your investments.
4. Cut your winners and add to your losers
5. Pay your taxes on income and recognized gains in your non-retirement accounts
6 .Relax. It will work out over time.

Now go play with the kids, grandkids or just golf.

Jim Ludwick
Jim Ludwick

Jim Ludwick is the founder of MainStreet Financial Planning. His varied education and life experiences have enabled him to apply his knowledge and experience into useful solutions for personal financial problems. His writing and broadcasting activities allow him to help many more than just individual clients. He loves a microphone.

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