Cheers! A December Greeting

As we head into the end of the year, we're seeing some market volatility — and that can feel a little unnerving, especially after a long run-up to the right. But let’s be honest: volatility almost always reflects uncertainty.

Right now, the big questions swirling in the markets are:

• Will interest rates be cut — and when?
• Are stock valuations too high?
• Is the economy slowing, and are we entering a new phase of the cycle?

Do these uncertainties mean it’s the end of the world? Does this mean you’ve made a terrible mistake — that it’s time to throw in the towel?

No.

What really determines whether an investor succeeds — now or in any environment — is not what the market does, but what the investor does. Your behavior, your mindset, and your disciplined approach matter more than the daily headlines.

A Real-Life Example

I recently met a gentleman in his 70s — a physician — who had accumulated around $15 million over three decades. That result is undeniably impressive. What’s remarkable, though, is that he didn’t get there by actively trading, watching every market move, or picking individual stocks. Instead:

• He believed investing worked.
• He trusted the power of compounding, “the closest thing we have to magic.”
• He stayed invested through good times and bad.

He didn’t need to know the ins and outs of every asset class, mutual fund, or economic indicator. He understood the essentials, and that was enough.

If there's a secret to investment success, it's beautifully simple: time + consistency + patience, with a healthy dose of rational optimism. Those who try to time markets, constantly predict doom, or chase the next hot trade tend to underperform.

On the deafening noise:  it's not your imagination.  As media becomes more democratized, with any individual able to make a Youtube video or post market commentary, the information landscape has become chaotic and polluted.  Content creators are desperate in their quest for clicks and eyeballs.

Zooming Out: The Long-Term View

We’re not here for the daily noise. We’re here for decades.

To illustrate, here are the annual total returns for the S&P 500 over the last 20 years (including dividends): (Slickcharts)

*Total return = price change + reinvested dividends. (Slickcharts)

Why this matters: Over those two decades, even with big down years (like 2008 and 2022), the average annual return has been very strong. The long-term trend benefits those who stick with it.

My Commitment (and Yours)

Thank you so much for reading these posts and for sharing them with your friends, family, and community. I'll be taking a little break from writing as I pour more energy into January reviews— but everything I believe about planning and investing is documented here on this blog.

If you take one thing away from this post, let it be this: You don't need to predict the future. You just need to plan, stay consistent, and let time do its work.

All my best,
Rachel

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Western Wealth Management LLC , a registered investment advisor. Western Wealth Management LLC and Kennebec Wealth Management LLC are separate entities from LPL Financial.