It’s been almost a year since the stock market bounced back from the March 2009 lows.  When we look at the last year of the Dow Jones, things look pretty good.  That is a classic bullish chart, moving from lower left to upper right.

When we take an intermediate time horizon; lets say a 3 year chart, we see a different pattern.  What we notice is that we’re still a long way out from the all time highs.

So, when will the market reach these levels again?   I have no idea.  The thing about the general equity market, is that you can make a compelling argument for both sides.  I have an idea but I understand it’s all built on a probability.   But you see, everyone wants a sure thing when it comes to investing.   Investing as easy as it seems is not that straight forward today.  We have a lot of intertwined trends and fiscal policies that are making things hard to predict.

The frustration and trepidation is understandable given the last 10 years.  Here is a 10 year chart of the Dow Jones.  So, we are pretty much back to even from 10 years ago.  That’s a lot of stress and frustration along the way.  Aren’t we told we should look at the “longer term” for a better perspective?   In this case the market only really looks good versus one year out.

While I believe 100% in investing for your future, even in certain markets, the best investment is in yourself.  I am not just saying that as a metaphor, but more along the lines of taking responsibility for the outcome versus leaving your retirement and lifestyle dependent on the stock market.

What most of the investment advisors and investors realize after the last 2-3 years is that the markets are humbling and not predictable in the short term.  They can be traded but that too requires commitment.  There are so many variables pulling on each other, it has made predicting only harder.

So, where am I going with this post?  What’s the real message?

-If you really want to gain control of your financial future, you need to invest in your own business or your career and push that to your absolute highest potential.

-I would bet that you aren’t taping the ceiling yet.  Why not?  Are you waiting on the stock market to make you rich?

-The stock market returns aren’t nearly as important as the discipline of developing sound savings habits.   I do a lot of research for my job and find investor behavior quite interesting. Here is a little blurb I just pulled from a Fidelity study I was reading earlier in the day:

1) Is there a business you could start?  Perhaps online or even locally?  Make sure it is something you enjoy.

2) Are there existing avenues in your career that you are not pursuing?  If not, how come?

3) Are you controlling the things you can control such as getting out of debt and saving money (ie. deferring 10% of your salary)?

As much as we get wrapped up in the stock markets returns, we can see that there is so much else at stake.  When you really want to make significant progress and be sure you don’t spin your wheels for 10 years, the best investment you can make is in yourself.

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1. Long-term care insurance