While the markets are having a good year so far — the Dow Jones is up about 13% through mid-September — concerns about volatility remain.
To advisor Christopher Manske, for instance, there’s great uncertainty tied to inflation, the value of the dollar “and the crazy uptick in real assets like real estate and other commodities.” Plus, issues in the U.S. labor market could lead to “some sort of reckoning” that would likely spill over onto the stock market, he says.
But Professor Stephen R. Foerster of Western University, a book co-author on the industry’s biggest names — like the late John Bogle — says it’s easy to get “overly focused” on asset prices and to then “lose sight”of why we are investing for the long term. “If investing for retirement, what you really care about is the income that’s going to be derived,” he explains.