Over the years, market watchers have tried to identify numerous ways to predict if a bull or bear market was ahead. Interesting forecasts and market direction correlations have been made based on which team won the Superbowl, how many Harvard graduates take jobs on Wall Street, the profitability of cardboard manufacturers, or even the trend of whether or not lipstick sales are increasing or decreasing.
Did you know there’s a positive correlation between the McRib being back at McDonald’s and the stock market going up?
Supposedly, the Golden Arches bring the pork sandwich back when they think consumers have more disposable cash.
Rather than relying on the scheduled availability of a favorite pork sandwich, we recommend a time-tested approach utilizing the three following keys:
1. Diversification. Make sure you have differentiation in your investments. In different market conditions, some things should zig when others zag and vice versa.
2. Risk Tolerance. Get your investments aligned with your capacity to accept risk. If you are properly invested based on your risk comfort level, then you may not get heartburn if the McRib Sandwich misidentifies the direction of the market.
3. Long-Term Planning. Studies have shown that those who work with a financial planner feel more financially secure and have greater confidence they will achieve their goals1.
The McRib might be tasty but don’t bet your family’s financial future on a pork sandwich. I’m here to help. Please reach out and let’s create a plan to build and preserve your family’s wealth.
1NWM Study 92% of US Adults happier and more confident when finances are in order