Two old sayings can harm your investment returns and your 401k at work: “January sets the tone for the entire year” and “the first five trading days set the tone” for the whole year do not always work. Do not let these sayings harm YOUR 401(k) plan. We are off to a good start so far in 2012, but predictions are a slick way of simply guessing about the future. What DOES work are the patterns we see on the point and figure charts. As noted before, if supply and demand work on Main Street, and at the food store,, and at the gas pump… why does supply and demand NOT work on Wall Street? Well, it DOES. Don’t be fooled by the January effect. I would also add the following:
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.
All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.
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If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.