TurbulenceOctober 17, 2018 -
Categorized in: IAG News
The recent turbulence in the stock markets created some excitement for the attention-span-challenged talking heads over the last week or so.
These attention-seeking distractors feel compelled to go searching for causes, assigning blame, and stirring up the worst instincts in long-term investors’ minds whenever there is a bit of turbulence.
If you are on an airplane, turbulence happens. It is generally not predictable nor visible. If you are on an airplane, you made the conscious decision to fly.
That is why it is so important to select the right form of transportation when heading toward your destination. Depending on the distance from your goal, some transportation methods are more favorable than others – but they all come with their unique set of advantages and risks.
Decide to walk to your destination and it could take a very long time. Great for short distances on warm, sunny days. Expect minimal turbulence.
Decide to drive to your destination and you will likely be more efficient with your time, but road construction, traffic jams, and distracted drivers pose a danger to your prompt arrival. Great for mid-range destinations. Expect some minor jostling.
Decide to fly and you could get there the quickest, but you run the risk of security delays, flight cancellations, and crashing. Great for long-distance trips. Expect some turbulence (sometimes severe).
At IAG we typically measure your financial destination in years rather than miles. Your money has a destination – short-term (1-3 years), mid-term (4-7 years), or long-term (8+ years). When you may need it determines which investment vehicle we recommend using to head toward your destination.
The turbulence we are currently experiencing is for long-distance destinations only. Please keep your safety belts fastened and stay on the plane all the way to your destination.
Quote of the week:
A distractor example from CNN Business, 10/11/18: “The stomach-churning market scare continues.”
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