One of the advantageous of being an older investor is having many battle scars which stretch back to the bear market of the oil embargo years in the mid-1970’s. Listening to the media today reminds me of many events in the past, from the Arab oil embargo to the present Trump inauguration.
Return To The Mattress
The history of investing in equities is littered with scary stories and spine-chilling predictions that would make just about any investor question his sanity about investing his hard-earned cash in anything other than the latest PosturePedic Mattress.
Confusion and Anxiety
There is a tremendous amount of confusion and definitely, anxiety, over the upcoming inauguration of President-elect Trump.
Part of this is being caused by his comments on everything from the US dollar to trade to intelligence reports to even his selection of cabinet officials. The media is having a field day with all of this and it is continuing to cause volatility in the stock markets, and the general public. This media frenzy is not limited to just the US. Even in Canada the media is making lots of noise this morning over a gathering of “Americans” at an event in Toronto who are thinking of becoming “Canadians”. The media is often the cause of anxiety for investors.
End Of World Media
Every single event is reported as almost the “end of the world” by the media. Remember how the US dollar was going to collapse after 9/11? How about the US dollar collapsing after the credit crisis in 2008 to 2009 and being replaced by a basket of currencies? How about the predictions by the media that unemployment in 2009 would hit 20%. What about all the media reports about how the credit crisis would lead to the greatest depression the globe had ever seen back in 2008? Then there were the reports of how the zero interest rate policy would lead to hyper-inflation within 5 years. Analysts and the media predicted uncontrollable hyper-inflation as bad as Germany saw after World War One. Since 2011 I have read numerous reports of a coming collapse of equities. Every 4 or 5 months another investing guru gains the spotlight with outrageous calls of gold sky-rocketing and the economy collapsing, tanking stocks to levels that would make 2008 look like “a picnic”.
The most important thing we as investors can do is to turn down the media noise. Instead focus on the quality of various companies, their balance sheets, levels of debt, their earnings results, their forecasts into 2017 and stocks price chart patterns. Focus on continuing to invest and grow your portfolios and push aside all the noise.
The Engine Of Growth No Matter Who Is President
Trump will be sworn in as President but much of the media hype and anxiety will never come to pass. America is the engine of growth on the planet no matter who is President. 25% of just about every single product goes through America. For those who are anxious, look back at all the issues this great nation has faced and overcome.
Then remember the past two decades of tumultuous events America has witnessed and consider the dire predictions of the media and analysts about these events.
Focus On These Charts
Instead of listening to the noise keep these two charts in focus.
SPX 10 Year Grow 61%
Over the past 10 years the market has seen an overcome the great bear of 2008 to 2009 and three corrections for a gain since Jan 2007 of 61%.
SPX 20 Year Growth 200%
Over the past 20 years the S&P has overcome two devastating bear markets and a number of corrections to post a 200% gain since Jan 1997.
Turn Down The Noise
Those two charts above tell you why I am always investing. There are opportunities everywhere if we learn to turn down the noise.
Just My Opinion – Teddi Knight