What is Your Perspective on Long Term Investing?

Some are saying "this is just like 1987". Really? In 1987, the market dropped by over 22%. But the market dropped Monday just less than 5%. If you were to listen to the media, you would have thought the market dropped by 50%! Let's keep things in Perspective. It's alarming enough without added "hype".

Today I was reminded of the quote from earlier in the quarter from Portfolio Strategist Litman/Gregory who stated the following, "it is often when the overall trend is negative that disciplined investors can build a portfolio for long-term out performance....It requires patience and the ability to weigh long-term analysis above short-term fear..."

Fear-based overreactions can make a temporary loss permanent. Long-term investment plans expect that tough markets - even bear markets - are a fact of investing life, and are often a catalyst for new opportunities. The key, and the most difficult challenge for advisors, is helping clients avoid the most significant risk they face: emotions.

How are your emotions holding up? Are you scared, frustrated, uncertain, confused, even mad? Or do you feel like you've been here before and don't like it but understand the opportunities?