When you want to evaluate your investment returns, what do you compare them with? Those of friends and neighbors? The latest market trend? To fairly assess how your investments perform, you look at your goals.
Now that summer is well along, stocks have pushed well beyond a five-year bull market run. You hear people talk at company picnics, club get-togethers or family events about how well their stocks do. The more successful the stories you hear, the more you feel like you’re falling behind even given occasional down days on Wall Street.
Instead of constantly comparing yourself with what everyone else is doing, keep in mind two important elements of your investment strategy – your goals, and an appropriate way to measure performance of your whole portfolio, not just the winners.