CHICAGO, Aug 11 (Reuters) – With global angst going up
several degrees, there are myriad reasons to feel nervous about
stocks. But that shouldn’t compel you into timing the market -
focus on your prosperity and happiness instead.
As University of Michigan researchers Justin Wolfers and
Betsey Stevenson have discovered in a study on economics and
happiness, there’s a strong link between higher incomes and
self-reported levels of life satisfaction and happiness. (Link
to study: bit.ly/1cg1Mj6)
While money is certainly not the only ingredient for a happy
and prosperous life, it can certainly smooth out a lot of the
Here are four reminders for why you should not let market
anxiety eat you up:
1. Stocks follow cycles, but most analysts are notoriously
awful at predicting when they begin and end.
Look at the year 1982, when the S&P 500 ended a 63 percent
down cycle that began in 1968 at the height of the Vietnam War
and widespread social unrest. In the early 1980s, Ronald Reagan
was president, the Federal Reserve was fiercely battling
inflation and few had stocks in their retirement plans.