WORDHOUSE WEALTH COACHING

10 Reasons to be Thankful!

Maria J. Kuitula and Phyllis J. Wordhouse

Clients, these are difficult times in the financial markets. It is your reaction to the situation that is important and will get you through to better times. Please raise your half-empty glasses and view them as half-full. Here are 10 reasons to give thanks regarding the economy and investment markets:

1. The market isON SALE NOW! You can buy shares of DFA (Dimensional Fund Advisors) mutual funds at very low prices, and receive more shares. History shows that higher market returns always follow bear markets and we know that over time this will just be anotherhistorical market blip.
   
2. In the long term…YOU WILL BE FINE! It’s a great time to get down to the basics and re-evaluate your risk tolerance and goals. If you haven’t slept during the market downturns, consider transferring to less growth…after your portfolio recoups. Matrix allows you to change your risk level once.
   
3. Gas prices are down!
   
4. Discern the TRUTH from what you see, hear and read! The media is showing their true colors by selling fear of the future instead of educating the public. Clients who have taken the MPT (Modern Portfolio Theory) classes learned how the market works…and understand that the media is NOT your friend. Remember, the media needs to sell something...newspapers, TV time, magazines, radio ads, etc.
   
5. NOW is the perfect time to convert your IRA to your Roth, as its value is temporarily low; therefore you will pay less tax next April!
   
6. According to DFA ’65-’08 research, the average duration of bear markets in the US is 14 months. 3 This bear market has lasted about a year. We are not claiming it is near the end, but the longer it goes on, the closerwe are to the next bull market!
   
7. Someone is buying… on the other side of the sell trades, from all the people liquidating their portfolios, are investors who want to buy. KEEP INVESTING IN THE FREE MARKET FUNDS…YOU WILL THANK US LATER!
   
8. Unless you have sold your holdings, your losses are only on paper. Market recoveries after prolonged downturns tend to come in quick sudden bursts. To capture those recoveries just stay disciplined in structured funds.
   
9. It’s a great time to share with your friends about MPT: You own 14,000+ unique stocks and bonds, in 39 different countries, in 15 “pure” asset allocation funds! No one is better diversified than you!

3 'Bull and Bear Markets, S&P-500 Index', Dimensional

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