Aaron Tippin is a country music artist that rose to fame in the early 1990’s. I was a teenager when his debut single was released, “You’ve Got To Stand For Something”. It became a popular anthem for Americans as we entered the first gulf war. However, as I think about the world of political correctness that we live in today I think the lyrics of the song speak louder than ever. We should all be so bold as to stand up for what we believe in. The chorus of the song went like this…
“You’ve got to stand for something or you’ll fall for anything
You’ve got to be your own man not a puppet on a string
Never compromise what’s right and uphold your family name
You’ve got to stand for something or you’ll fall for anything”
Investing is no different. Successful investing requires conviction and a strong belief in your long term investment strategy. For instance, most people feel uncomfortable buying into the stock market when it’s down. Of course, the goal of any investment is to buy as a low as possible, but the fear of losing money often hinders our ability to make logical buying and selling decisions. Warren Buffet warned, “You pay a very high price in the stock market for a cheery consensus.” In other words, if everyone agrees with your investment decision, it’s probably not a good one.
A great investment plan is worthless if it’s not properly executed. This is the reason it’s so important to understand your long term strategy. I have no idea what the market has in store for us over the next few months, but I do know that at some point the market will correct. When it does, take comfort in the fact that you have a well-designed investment plan that is designed to help minimize the impact of market downturns.