Everyone is well aware of the market crash that happened around 2008-2009 when many investors ran to the sidelines, essentially scared out of investing in stocks. Five to six years later, some of those investors are still waiting, because they are unsure if they can trust the stability of the market. However, the stock market is inherently unpredictable, and waiting around for the right moment to get back in is pointless. There isn’t a “right” time to jump back into the market. It’s just a matter of moving forward and putting the crash behind us.
Mark Matson recently appeared on CNBC to share his thoughts on whether or not investors can trust the market again. CNBC’s host asked Matson if the recent Fed statement about the economy was a green light for U.S. equities. Matson explained that investors should not focus on short-term Fed statements and should forget about currencies. Instead, investors should think long-term about equities, which have historically been one of the greatest wealth creation tools. While every adviser has its own strategy and past performance doesn’t guarantee future results, Matson and his team of advisers follow this investment strategy.
Matson also discussed the realities of how investors reacted during the 2008 recession and about how the market has rebounded. Even so, investors are still hesitant to invest. Matson suggests buying equities and holding on tight, because the focus should be on the long term. Investors should stop trying to predict the next 10% market move, no one can foresee the future of the market.