Friday afternoon, my wife Jean, and I were driving to a social event we had scheduled for that day. While traveling, we were listening to the car radio and, at the top of the hour the news came on. The newscaster breathlessly announced a “Selloff” on Wall Street. She stated that the Dow Jones Industrial Average was down about 125 points. Now, when you hear the term “selloff you think everyone is dumping their stock positions and running for the hills, i.e., bonds or cash. Jean & I both laughed, noting that the Dow Jones Industrial Average started the day at 26,387.20. So, if I divide 125 by 26387.20, I get 0.0047387616 which means it was a 00.47% decline at that time. That is less than half a percent. (If they can get ridiculous in their language, I’ll get ridiculous in my arithmetic.) BTW, for the day, the Dow was down 97.52
The attached article talks about the uncertainty in the world markets. And, yes, there’s a lot of uncertainty. There’s a lot of uncertainty in life. That’s what makes investing in equities more rewarding over the long haul than saving your money in a bank CD or corporate bond or buried in your backyard. If there was no uncertainty, equities would perform much like a government bond or a bank CD. Yes, investing in equities does have risks and there are no guarantees. Past performance is no guarantee of future results. But here’s something we all need to think about. To quote Nick Murray from his August newsletter, “The thermonuclear fuel on which financial journalism runs, and will always run on, is negativity. In fact, optimism remains the only realism, the only worldview that squares with the facts, and with the historical record.” If you would like more of the historical record, please let me know.
“The Liberated Investor Advantage” is a great exercise in helping you to be able to see more clearly through the fog of investing and financial planning. This is a very in-depth look at your present financial position and, using some proprietary software, how it might work out for you and your family moving forward under various life-changing circumstances. (The software acts like an MRI for your money.)
As always, should you have any questions or wish to meet with me, please just email or call the office. In the meantime, have a super week.