Living in good economic times (as we are) should be fun and prosperous, so we should be happy. Most of Van Wie Financial’s clients, as well as most people we talk to on our radio show, fall into that exact mold. Yet we are deluged in the media with morose descriptions of current sub-standard life in America. Warnings of an all-but-imminent recessionary downturn in the economy are everywhere.
Ubiquitous “gloom and doom” predictions are designed to get our attention. One of the oldest sayings in media is that “if it bleeds, it leads.” Good news is boring, optimism is uninteresting, and satisfaction is unacceptable to political candidates aspiring to replace incumbents at all levels of government.
Coupling the media frenzy with a general misunderstanding of economics produces misguided and unfounded negative forecasts. Anyone with a reasonable education in modern economics knows that the American economy has responded to recent tax cuts and regulatory repeals in a positive manner.
Disagreeing with current Administration policies does not make current policies incorrect or ineffective. This plain fact disappoints many people who despise the current Administration. It does not, however, change the laws of economics. Wishing on a star is not about to change anything in a massive and fast-moving economic system. Capitalism is alive and well in the United States.
Investors would be wise to ignore the ramblings of partisan naysayers. Individually, developing long-term goals and plans to reach those goals is the same great idea it has always been. Many people are uncomfortable planning and investing by themselves, and that is why Van Wie Financial is here to help.
Recent studies have shown that investors under perform their own assets. This more-or-less strange sounding result is easily explainable. Fear and greed cause many investors to ignore the most simplistic rule of success; buy low and sell high. Doing the reverse is not only detrimental to success, it is unfortunately commonplace.
We have said many times that the hardest job of a competent financial advisor is to avoid “doing something” at those frequent times when we are convinced that any change is most likely to produce bad results. We appear to be in an era where patience is a virtue.
One day that pesky predicted recession will hit. We will react accordingly, as should you. That day is not today.
Van Wie Financial is fee-only. For a reason.