The Whims of Wall Street
It can be exhausting trying to keep up with the whims of Wall Street. Lately, the financial markets have been fixated on federal taxes and what may be proposed on Capitol Hill in the weeks and months ahead. Wall Street’s focus on taxes closely follows its attention on the 10-year Treasury yield. And it wasn’t that long ago that the financial markets were influenced by reopening and vaccine distribution statistics.
What’s Wall Street’s next whim? Some might say inflation. Others might say earnings will provide the next narrative.1 One thing is certain: keeping up with Wall Street's roaming eye will wear out even the most seasoned investor. As Warren Buffett once said, “The stock market is designed to transfer money from the active to the patient.”
Investors need to understand that it’s not about the daily events that influence Wall Street. It’s about whether you are pursuing your financial goals based on your time horizon and risk tolerance. How the financial markets perform from week-or-week or month-to-month should be of some interest but perhaps not an overriding concern.
If something has changed with your financial goals, or if your time horizon has shifted, please reach out to discuss your situation. Staying focused on what’s important to you is the most crucial thing we do.