Don’t Dither

It seems that dithering is going around. In my experience, investors can be particularly prone to dithering, especially during periods of dramatic headlines and above average market volatility. My suggestion: Stay the course!

You or you and your advisor(s) should have previously developed well-thought-out, long-term portfolio objectives, specifically tailored to your long-term goals. Decisions in such key areas as risk, asset allocation and income requirements, to name a few, should have been addressed early on, during a period of relative calm.

It is generally counterproductive to attempt to change course in response to near-term considerations. Too often, investors develop an acute case of cautious at exactly the wrong time. We know that markets are likely to be volatile and we know that news headlines are often scary, but experience has shown that remaining calm and sticking to the long term program pays dividends.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA