David Lerner Associates: The Sensible Middle Ground of Investing

Investors in the stock market have been on somewhat of a roller-coaster ride recently. It is one thing to experience the thrill of a sudden drop at the fairground but quite another when it’s your investments that take a tumble. According to market pundits, a correction in the stock market is nothing unusual, and investors should get used to this volatility. [1] In fact, corrections in the market are expected about once every 18 months, and since there has not been one since October 2011, it was way overdue. [2]

These market fluctuations can be stressful for the average investor for whom savings and investments are a way to secure their future. They want to be able to buy a house, live well, send their kids to college, and retire comfortably. Unpredictable swings in the market can undermine the entire plan.

“We believe in something that we call the ‘sensible middle ground of investing’ – investments based on things that we feel have value, and while not guaranteed, are designed to regularly pay dividends or interest,” says John Dempsey, President of David Lerner Associates, an investment company headquartered in Syosset, NY. “

Successful investors are the ones who have the ability to remain calm and levelheaded when everyone around them is freaking out, says The Motley Fool, a website about investing. [3]

Here are 5 tips for investing:

1. Be an investor, not a speculator.
2. Invest in sound businesses that offer value.
3. Take the long view – look for reward over time.
4. Spread the risk. Diversify your investments.
5. Stick with the plan. Don’t get distracted by short-term changes in the market.

It’s easy to get jittery when there is upheaval in the financial markets, but now is the time to follow Winston Churchill’s advice – keep calm and carry on. [4] When you have a solid plan based on the sensible middle ground of investing, that’s a lot easier to do.

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual is personal circumstances. Member FINRA & SIPC.