May 2017: Slow and Steady Wins the Race

The post-election rally in the equity markets and subsequent market highs has prompted some
clients to ask us, “Why not sell now at the market high, and buy-back after the drop”. The question
makes sense after all; as a logical person knows: what goes up, must come down. But this logic requires
the following observations to be true: 1) markets are currently at their cyclical high; 2) a market
correction is inevitable; and 3) the timing of that correction and its subsequent bottom is reasonably
predictable. Long-term clients of Greenwood Gearhart know our response, repeated now over decades:
“staying the course” is always the best option. In fact, removing the investor behavior penalty
associated with moving in and out of the market at inopportune times is one of the most important valueadding
aspects of professional investment management.

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