Broker Check


Our Economy

| April 10, 2017

According to an article by Peak Advisor Alliance, the word “Uncertainty” is often abused. We hear it and see it over and over again. Yet this same word is perhaps the single most appropriate word to convey the emotional climate of our country.

Think about this: Do you believe there is uncertainty within our government? Is there uncertainty about our U.S. dollar? Or how about whether or not we are actually recovering from the Great Recession?

I believe you would have to be an extreme optimist to say no to any of these questions. On the other hand, the article I read by Peak Advisor Alliance discussed the uncertainty over the past 100 years. There has been 2 World Wars, countless other wars and terrorist attacks, a Cold War, a war over Civil Rights, the Great Depression, the assassination of John F. Kennedy, unbelievable inflation, extreme tax rates, and the list goes on. Just check out the 81 Reasons Why Not to Invest in the Stock Market article in our online Learning Center.

Considering the uncertainty over the past century, it would be safe to conclude uncertainty always exists. Unfortunately, we can’t rein it in - and we definitely can’t predict when and if it will strike. What we can do is keep in mind that there is always a level of uncertainty and plan for it. In the world of financial planning and managing money, this is called ‘stress testing’.

It is our job to consider worst case scenarios, and help our clients choose an investment plan that will reflect the risks they are equipped to take. We won’t always be right - no one can be…but we stick to our disciplines. Our experience through various uncertainties over the last 30 odd years has taught us to be comfortable with our disciplines.

If today is the first day of the rest of your life, how long will that be? 20 years…30 years…40, 50?

We have to keep the big picture in mind and plan for it. Which, by the way, is not all bad - the big picture is that our world economy is actually growing. Everything is continuing to develop, change for the better and become faster.

I agree that people don’t plan to fail, they just fail to plan. You have heard the saying before and probably so many times that it just flies in one ear and out the other. But I want you to read it again and really think about what it means: People don’t plan to fail; they just fail to plan.

If we stopped planning during the Great Depression or the Cold War or when interest rates and taxes were at an all time high because of economic uncertainty; what would that mean for us today? John Wooden, 10 time NCAA National Championship Basketball Coach quoted, “Do not let what you cannot do interfere with what you can do.”

We have uncertainty today; there is no doubt. However, I am a patriot! We live in the United States of America! Our country has made it through uncertainty many times before and we will do it again! Our job is to plan for the big picture so that we can live Life on purpose!