Remember, the only choice is optimism, the pessimists never get it right.

Who would have thought? A little over 1 year age, the chicken littles of the world were predicting that the end is near. Unemployment skyrocketed, businesses were shut down and governors of the various states were issuing executive orders in an effort to bring the plague, Govid-19, under control. The genius of our founding fathers in forming a Republic meant that different individual states could approach the problem in different ways. Today, unemployment is @ 6% and the economy is springing back to life. (See the attached article.)

No one knows exactly what’s going to happen going forward but here are some comforting thoughts.

1. Per Jeremy Siegel in Stocks for the Long Run, U.S. equities have, for well over two centuries, compounded at seven percent in excess of inflation. For the last 100 years, that has equated to about a 10% annual return.

2. High quality bonds have been at about 3%, less than half.

The difference is because stocks are more volatile than bonds. If you could get passbook savings equal to equities, we would all be flooding the banks. What we have to put up with are the market swings and staying the course. That also means tuning out the talking heads telling us what to do with our portfolios now. What is difficult to do is to live through the yearly drops that occur and the once in about five years of significant drops realizing they’ve all been temporary eventually leading to the permanent uptrend. We all invest for income and, eventually, legacy. The goal is to keep our eyes on the goal.

As you know, I’ve been focusing on making sure our documents are in order. So, when I discovered the attached PDF file about famous estate planning blunders, I wanted to add it to this week’s email. it just goes to show us all that, no matter how much money people have, proper prior planning prevents poor performance.

As always, should you have any questions or wish to talk, please email or give me a call.

Doug Alden

Link to article one…
Link to article two…

Office 828.668.0665
Cell 828.713.4602

PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

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