Did you watch the Super Bowl LI?
Did your team win or lose?
Some unhappy fans went to social media during the game and started saying negative comments about their losing team and then started talking about the next football season already.
Super Bowl 51 was one that many will remember for many reasons because 2-3 major records had been broken and there is now a winner in the history books.
The one record that was broken was the comeback of the winning team. Going into the halftime game show the commentators were talking about how no team had ever come back from this deficit and won the Super Bowl Trophy.
This is so common in the investment arena.
Investors tend to want to dump their non-performing and lagging investments and buy the better performing assets classes. They say things like “let’s sell these assets that aren’t growing enough” or have stopped growing. Thinking that the other lagging investments can never catch up.
Well the winning team re-taught us to never discount and ignore the other team on the field until the final buzzer.
Don’t abandon or sell high quality lagging investments. Investments go up and go down but over time have an upward trend.
When you least suspect it, asset classes can and do move fast to achieve their expected long term returns.
A prudent portfolio always uses a globally diversified portfolio with low investment costs and all major liquid asset classes. When you least suspect an asset class to catch up and pull ahead and win it can. The Super Bowl was a great reminder to never discount an asset class but stay invested long term.