The Weekly Update 10/25/2024

Fiction versus Reality

If you were to go back and review the top news headlines of the last five years you might rightfully find yourself depressed.

The media, it seems, will do almost “anything” to grab your attention long enough to make a sales pitch to you.  A pitch for cars, clothes, food away from home, vacation, etc.  Of course, they are masters at knowing good news does not accomplish that task.  No, it is negative news that gets our attention!  The worse the better and as always in the newsroom, “if it bleeds it leads!”

For that reason, the chart below should be the antidote to that depressed feeling.  This chart goes back to 1946 and covers pretty much every bad headline since you have been alive.

Take a moment to look at this chart as an investor planning your bigger financial future.  Then, look at it again, only closer.

Notice the green represents the bigger financial future and the red contractions are the take aways from the bigger future.  I am interested in your “takeaway”, but mine is this.  Over time the growth dwarfs the takeaway, i.e. time smooths out all since 1946.  Just like the piece I wrote on 1-7-2022, Five Year Money™ (Read it Here).

I’m interested in your thoughts, comments and observations. Feel welcome to call, email, or stop by the office and say Hi.

 Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Stock investing includes risks, including fluctuating prices and loss of principal.

Asset allocation does not ensure a profit or protect against a loss.  Value investments can perform differently from the market as a whole.  They can remain undervalued by the market for long periods of time.