Should I go to all cash now that COVID cases are rising again?
That was the question posed to Jeffrey Levine, director of advanced planning at Buckingham Wealth Partners, discusses in this episode of of Ask the Hammer.
And the answer is no.
"I don't believe that it's best to react to the news of the day," said Levine.
History has shown us that what we believe to be the case does not always pan out when it comes to the stock market, said Levine.
What to do then? "I believe it's about creating a long-term philosophy that aligns with your risks, your risk tolerance, and your risk capacity," said Levine.
In essence, it means creating if you don't have one an investment policy statement or IPS, or if already have an IPS reviewing it and making the appropriate course corrections if any are required.
"I think everyone should have an investment policy statement," said Levine. "Because when you look back to your own written words, it helps to remove emotion. And when it comes to successful investing, emotion is the enemy. Emotion is the enemy of all things when it comes to successful investments. And so anything you can do to remove some of that emotion from the process will help you to create better outcomes."