Tuning Out the Noise

When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested.

For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as affecting your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the so-called lost decade– the 2000s, when the S&P 500 ended below where it began–can help illustrate several periods that may have led market participants to question their approach.

• March 2000:

  Nasdaq Stock Exchange Index Reaches an All‑Time High of 5048

• April 2000:

  In Less Than a Month, Nearly a Trillion Dollars of Stock Value Evaporates

• October 2002:

  Nasdaq Hits a Bear-Market Low of 1114

• September 2005:

  Home Prices Post Record Gains

• September 2008:

  Lehman Files for Bankruptcy, Merrill Is Sold

While these events are more than a decade behind us, they can still serve as an important reminder for investors.

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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) with its primary place of business in the state of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. References to registration with the SEC do not imply any endorsement or approval of the qualifications of the firm, nor do they imply that the firm’s representatives have attained a particular level of skill or training. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.

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