I ran across this piece from Capital Group|American Funds that provides some historical perspective about the markets. It is an article written in 1974 by Jim Fullerton, Former Capital Group Chairman.
While the circumstances we face today are not exactly the same as during the time he references, I thought you might enjoy the read.
One thing that struck me was his quote from Dean Witter in 1932, “some people say they want to wait for a clearer view of the future . . .” I think that is just as true today as it was then. People do want assurance – they want a clear view of the future. But that is not something we can offer. There are times that we just need to recognize that there are some things over which we have no control and focus our energy on the things we can.
If you ask me if the stock market is going to go up or down? The answer is Yes! 😉
But, seriously, you cannot control the direction of the stock market.
My advice: Control what you can.
- Spend less than you earn
- Maintain sufficient cash reserves
- Minimize the use of debt
- Set specific, measurable, written financial goals based on your deepest personal values
- Develop a written, comprehensive financial plan based on your written financial goals
- Allocate investments based on your written, comprehensive financial plan
- Do not succumb to fear in declining markets, nor speculation in advancing markets
- Resist the need to outperform other people’s investments…or their lifestyle
- Maintain a personally designed, multi-asset class, globally diversified investment portfolio that considers your risk tolerance and time horizon, regardless of what you think is happening (or about to happen) in the markets, the economy or the world.
As always, please remember, you only have 168 hours to live your life this and every week. Spend your 168 hours doing the things that only you can do – the things that are truly important to you. Spend more time with the people you love. (And tell them you love them, too.) If you can’t do it in person, do it via skype or zoom. Do activities to help improve your health and fitness and spiritual life. Engage in activities that give joy to others (and see how much you benefit, too). Laugh out loud. Express your creativity. Play a game. Take a friend to lunch (or for the time being send them lunch via one of the food delivery services and do a skype or zoom meeting and eat lunch together). Donate your time (if possible) or resources to a worthy charity. Change your routine. Live a high-performance life!
If you have questions or concerns, PLEASE email me at firstname.lastname@example.org, call me at 954-302-6321, or text me at 954-880-3410. My assistant, Danielle, can be reached at 954-302-6324. The physical office is closed but we are all working remotely. I can set up a zoom meeting so we can be “face-to-face” from wherever we are. If we don’t pick up your call instantly, please leave a message. We promise to return your call as soon as possible.
Praying that you are well and staying safe.