How often should I check my portfolio?

It is actually possible that you are checking your portfolio too much and, as a result, your health can be adversely affected… What do I mean?

It’s actually quite simple, you see, the more frequently you check your portfolio, the more likely you are to observe a loss. As a result, you do what any rational person would do: stress, worry, pull your hair out, etc.

The stock market is influenced by random events and irrational emotions on a daily basis. There is no escaping this truth. With investing, time is usually your best friend. Even on a yearly basis, stocks on average are likely to rise. Let’s change gears. Think about your house… If you received a daily update on the value of your home you would panic! That’s because the price of real estate can be quite volatile, too. The difference is that we are not given a statement every month or online access with the ability to check it’s daily value. Despite its volatility, investors still love real estate because of the perception that it “always makes money”… Well that’s because most holding periods for real estate is greater than 5 years. If you applied this same logic to your portfolio and didn’t check your investment statement for 5 years, you’d be pleased most of the time too!. Focusing on temporary outcomes is a proven wealth destroyer. If you get sucked into the short-term noise, you are more than likely going to make a short-sighted decision that could hurt your investment performance. Sometimes good intentions can create unintended consequences.

So, if you are checking your portfolio more than once per quarter, stop! We want you to stay healthy! It is a terrible idea to judge the success of your financial future off of a daily performance. We believe in our process, and we know that good processes, not temporary outcomes, are the keys to positive long-term results! We urge you not to miss the forest for the trees.

If you’d like to talk to one of our advisors, or review your current portfolio please contact us! We are here to help! For the full article click here.