The fact that the S&P 500 index has reached all-time highs is great news. It displays the resilience of people, companies, and markets in overcoming challenges to achieve long-term growth and prosperity. From an investment standpoint, it can also be very emotional. To recognize that emotion, it requires a long-term mindset which allows one to take advantage of opportunities presented in the market. Long-term investors often view index levels through a completely different lens.
A successful long-term mindset in the investment markets requires a unique patience. The mindset must be one of optimism that ingenuity, resilience, and a greater purpose will continue to improve humanity over time. Staying attuned to the great discoveries taking place across industries and companies shape this conviction. There is also a confidence in the ability of financial markets to continuously reward long-term investors, as they have for centuries, willing to provide capital for future investment.
This mindset can completely form the way one views markets and index levels. So, the S&P 500 reaching 2,000 is great news and somewhat irrelevant at the same time. Attempting to overanalyze it can set one back. Over 40 years ago, when Sigma Investment Counselors was founded, the S&P 500 index was near double digit levels. One day in the future, the index will reach 10,000 as well.
For true long-term investors, today is another opportunity. It is not an opportunity to get in or get out of equity investments based purely on index levels. It is an opportunity to align capital with management teams and organizations that provide goods and services that will continue to innovate and reshape the world we live in. Realizing equity ownership is the best opportunity for capital growth and wealth creation allows long-term investors to be lifelong stockholders and educators for the current and future generations.
Financially and emotionally enhancing the client’s investment experience is taken with great pride at Sigma Investment Counselors. It begins with a thoughtful mindset, a team to align the appropriate investment plan, and in most cases it never ends. The hard work and privilege of equity ownership make everyday a good day for the long-term investor.
Allow us to enhance your experience.
All questions and comments are welcome.
Anthony J. Basalla