4th Quarter Client Note

By Steven Smith | Newsletters

Jan 23

From an investment perspective 2009 was a year for the history books. After being down 37% in 2008 the S & P 500 dropped another 25% through March 9; for a total fall of 57% from the October 2007 high. And then, beginning at the moment of maximum pessimism, the market recorded its greatest nine month gain in history — returning 65% — to finish up 25.5% for the year.

Due to the cruel nature of investment math (a 50% drop requires a 100% gain to break even) all stock portfolios have a ways to go to fully recover. But balanced portfolios, which didn’t suffer such large losses, have bounced back fairly well. Hopefully we won’t go through anything like that again – at least for a while.

The last couple of years have certainly proven that the improbable is not impossible. And there is a great deal of uncertainty as to whether the economic recovery will be robust or anemic. But one thing is certain; managing our emotions is a key ingredient to investment survival.

Ready to take the next step?

whats your risk number

Take our free risk assessment quiz to determine your readiness on the path to Financial Independence.

Self Guided Path

Get your Risk Number to pinpoint how much risk you want, how much risk you need and how much risk you actually have in your portfolio. Then build on this process to craft a personalized plan.
Steve Smith, Financial Planner

Steve Smith, Principal Right Path Investments

Fully Guided Path

Steve Smith, Principal of Right Path Investments is here to guide you with preparations to take your next step. If you're ready to take that step, schedule some time for a one on one with Steve today.

Contact Steve


Leave a Comment:

Leave a Comment:

%d bloggers like this: