“Never make permanent decisions with temporary feelings.” – Unknown
Inflation seems to be on the top of investors’ minds recently. The Fed seems to think it’s transitory or temporary. They feel when the pent up demand dissipates and supplies of goods and services get back on line, prices will normalize. Time will tell.
Question for you: Which cost more, your first house or your latest car? If you are under 50, what did you normally pay at a fast-food joint in high school? Shocker, inflation is here now and it was back then, too.
Next question: what was the Dow average when you were in high school? When you bought your first house? Your first car? Bonus question: which grew faster, inflation or Dow average? Feel free to email me your answers at Jeremy@RiverbendWM.com.
Late last week, I caught a cough I could not shake and worked from home on Thursday and Friday. I am rarely sick. I did not feel I needed to go to the ER, nor did I think it would be good for me to go out to a social event on Thursday night. Doing either would be irresponsible. However, I see this type of behavior in investing all the time.
Some investors get scared or think the world is coming to an end and want to sell everything. It is like going to the ER for a cough.
Some investors make money in one area and want to focus all their assets there. Just like going out late every night of the week – it could be bad for your health.
What is the number one killer of investment returns? Click here
What if taxes go up? Click here and here.
What if inflation rises? Click here and here.
We can eat right, exercise, get enough sleep, and still get sick. Just as we can save, invest properly, and plan our account values can still go down. This is natural, and we should treat it as such, with patience and understanding. Time takes time.
When the world does not end, we are left to live our life again.
On the lighter side, it has been two years since we have visited my wife’s family in Bulgaria. Elliott has turned from a boy to a young man since then. I am sure they will be surprised at his growth. Sadly, she lost a family member recently and we will attend some services.
Hope all is well with you and your family,
Jeremy Finger, CFP®, CIMA®, CRPC®, CPFA
Founder & CEO
Wealth Management Advisor
Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information. My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions.
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Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA Riverbend Wealth Management.
This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
