“Stop a minute, right where you are. Relax your shoulders, shake your head and spine like a dog shaking off cold water. Tell that imperious voice in your head to be still.”
– Barbara Kingsolver
Turbulence in a plane is normal, and so it is in the markets. This is the biggest turbulence we’ve seen thus far, and in 11 or 12 years. Painful! But that doesn’t mean you change a long-term decision on short-term emotions. In my opinion, the ones fives years from now who are the winners are the ones who are in control today. That was true in the past, and I believe in the future. I’ll continue with videos and newsletters as every day seems to be important. Due to regulatory requirements it takes a while from recording it to out to you, but I’ll do my best! Watch our video to hear more!
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Transcript
Hi clients and friends. Mike Brady with Generosity Wealth Management; a comprehensive full service financial services firm headquartered in Boulder Colorado. As you can see from the backdrop I am still at my hotel room leaving in about 45 minutes for the airport. I spoke at a financial conference actually a couple of days ago and with today’s technology it doesn’t really matter. I have the office here as if I was right there in my Boulder office with today’s, like I said, technology and Internet and everything else.
So, so much is going on. Every day is exciting. I’m assuming that you are paying attention to the news and watching everything and anyone who tells you how it’s going to play out in any aspect of the world at any time, not just today but in any time of the world is just lying and I’m not sure why they think that forecasting the future is helpful or even possible.
Reaching your financial goals and the best way to reach those goals is clearly defining your goals and having a plan for how to get from point A to point B. I think of it as riding in an airplane, from point A to point B there might be some turbulence, nobody likes it. The better the airplanes that we get the less turbulent things become, they’re able to buffer them so that you don’t see and feel what’s happening. But sometimes there is turbulence in the airplane, which is, of course, where I’m going with turbulence in the market. But in the plane it happens, it’s absolutely horrible but you know that periodically it does happen. Hopefully it doesn’t preclude you from taking that next plane ride because your life is much richer when you’re able to travel from point A to point B.
The market is no different, investments no different. Sometimes there’s turbulence. This happens to be a particularly difficult air pocket. I cannot believe the oversold indicators that I’m seeing. It’s quite remarkable. There are certain times in our lives where we’ll look back on it and say remember that time? And in most recent it was, of course, 2008. Another really bad selloff that was very precipitous was when the S&P downgraded the U.S. government in 2011. Maybe you remember that. Both of these incidents were recovered. They were painful both of them. We might remember them.
If you’ve been watching my videos I’ve been talking about the unnatural nature, the unusual nature of our calmness over the last two/three/four years that we’ve become lulled into expecting that that’s always the way it is there’s no volatility, very little volatility in the markets so I highly recommend you do that. I did a great one last summer August or September talking about the number of positive plus or minus one percent days in the year was remarkably low but most people perceived it as being particularly high but that actually wasn’t true. And it’s one of the ways that I would argue news media can really provide a picture that’s not statistically true or maybe completely accurate without emotion. These things do happen, like that turbulence on the plane the turbulence in the markets do happen, they are absolutely uncomfortable when they happen but that’s why it’s good to take a step back and say okay let’s be calm and remember that this is part of the plan, that I knew it was going to happen and then it did happen. I mean it’s just completely unpleasant but a part of that journey from point A to point B.
I mentioned something earlier about being oversold, yeah I watch a lot of technical indicators. At the end of the day my training almost 30 years ago was in technical trading. That’s when you’re doing various charts and things of that nature and the oversold nature of this is mind boggling to me. I’m very much looking forward to when it would turn around and that can be later today, tomorrow, next month, next year, I don’t know. But that’s the reason why oversold from my point of view leads to a very good market and that’s why we then have long-term investments along the way so that we can benefit from that when it happens at some point in the future when I don’t know when it is. I mean that’s why you have to kind of deal with things now and the best thing you can do is have control of your emotions.
Anyway, I’m going to continue to have these videos periodically when I’m back in my office I have a little bit more charts and things of that nature so I might get a little bit more technical for those of you who might want more technical. Anyway, 303–747–6455. Mike Brady. Thanks. Bye bye.