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Watching your portfolio too closely, Shrinking hold times for stocks & Investing at all time highs Thumbnail

Watching your portfolio too closely, Shrinking hold times for stocks & Investing at all time highs

Protection Wealth Lifestyle Updates Retirement

Some recent conversations with my clients have promoted me to write this blog.  

Q- How often should I check on my investments?

A- I recommend once a year.  Anything more, as you can see in the below chart, will only cause unnecessary stress/worry.  Also, rest assured I monitor my clients underlying investments daily and will reach out if feel a change is warranted.  You may also note that the longer your invested for the higher the possibility of a positive outcome.  For illustration purposes only


Q- My stock is not doing well.  Should I sell?

A- Remember when you invest in a stock you are buying into a business and must think like a business owner.  This mean allowing the company time to execute on their plans for growth and expansion which ultimately should lead to more profit and a higher stock price. This also applies to equity funds and indexes.  Ideally you should have a time horizon of at least 5 years plus.  Yet, based on the below the average holding period has steadily declined and is now about 6 months.   This is likely due to technological advancements in trading, the age we live in where if we need/want something we expect to get in now (ie. think Amazon) and people allowing their emotions to drive the decisions which typically leads to poor investment outcomes.  This also ties into the above issue where investors monitor their stocks too closely.  If you are buying good quality  stocks, which are the ones I recommend for my clients, then you should not worry about the short term fluctuations.For illustration purposes only


Q- Markets are at all time highs should I invest or wait for a pull back?

A- As you know no one can time the markets and statistically based on the below chart you are better served investing when the markets are hitting all time highs.  That said I also believe the set up is good as we are at the beginning of a new economic cycle and that is typically a good time to invest.

For illustration purposes only


Thanks for reading and as always please don't hesitate to contact me with any questions.

Warm regards, Paul Polyviou CFP, CLU