Opinion

John Wasik

Four reasons to ignore market timing and focus on happiness

Aug 11, 2014 15:55 UTC

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
rough edges.

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.

Healthcare: A remedy for long-term investors

Aug 4, 2014 19:03 UTC

CHICAGO, Aug 4 (Reuters) – For healthcare, gray is the new
black.

The fastest-growing segment of the global population is aged
60 and over, according to the United Nations Department of
Economic and Social Affairs. That slice of humanity is expected
to increase by 45 percent by 2050.

The surge in the older population has contributed to a wave
of new product introductions in biotechnology, medical devices
and pharmaceuticals, and expansion of healthcare services.

In addition, healthcare is a remarkably durable sector for
investors, soldiering on despite periodic market downturns, like
the one seen last week when the S&P 500 index had its worst week
since 2012.

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