Market Update | June 26, 2023

BCS Wealth Management will release a podcast series soon. Organized and recorded in-house by our team at BCS Wealth Management, the podcast will educate about personal financial planning and investing topics, as well as provide insights to the current investment environment and our views. Last week we recorded one of the episodes, titled “Trading vs. Investing.” Below are some of my favorite quotes from the recording.

Think of these quotes as a teaser. The full episode in the podcast format will be released later this summer. Meanwhile, consider these insights as food for thought about investing.

On the question of “What’s the difference between trading and investing?” Nathan Goodwin noted, “Investing is a well-thought-out process with planning, looking at goals and at the future. It’s typically a buy-and-hold strategy, trying to reach some goals that you have for down the road. Trading is more short-term: trying to take advantage of short-term swings in the market. Traders try to profit off of company-specific news, economic news, or what’s happening in the markets.”

Scott Linn commented, “I think it’s much harder for an individual to remain disciplined to a short-term strategy and day trading. We talked about how the market is up any given day just 55% of the time, basically a coin flip, versus if you have a long-term investing strategy or specific goal over the long term that you’re investing for. I think that gives folks more discipline [around] what the strategy is and what it is they’re trying to accomplish.”

In the part of the conversation about how to apply this philosophy, Scott remarked, “We don’t change our investment strategy based on what the market is doing. We change our investment strategy if our goals have changed…. Again, that goes back to that long-term, unemotional type of investing.”

Let us know if these “teaser excerpts” prompt any questions or if we can do anything for you.

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