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You may not have heard yet…but the Fed might raise interest rates.  That might have been mentioned a time or two today but in case you missed it, I wanted to be sure to share that up front.

A rate hike, and the potential impact on the stock market is a topic that’s talked about frequently.  The majority seems to have low expectations for future market returns.  They point to low interest rates (they can only go up from here) and high multiples (they can only go down from here) as a bad combination for returns moving forward.  Preparing for low returns and hoping for better makes sense…I don’t disagree.  But, don’t get caught up in trying to predict the market – it’s a losers game and exposes you to  the real risk.

For most investors, the stock market is nothing more than a tool to accumulate wealth for their future self – and it’s been an effective tool for a long time.  Successful stock market exposure requires long term perspective and discipline.  The biggest impediment to your success is not a market crash or increase in volatility…it’s your behavior. Don’t make predictions based on what you think could happen or what somebody said on the internet – at least don’t act on those predictions.  Come up with a plan to save early and often and stick with it – the odds are in your favor.