Salt Lake City Office
2150 East 1300 South,
TruNorth Investment News
September 2020 Edition
The dates change, but the headlines stay the same
Extra, Extra, Read All About It…
“The U.S. is afflicted by a massive economic migraine, and more than 200 million Americans know too well just how much it hurts... The stock market has scarcely been so shaky since 1929. Just about everybody who buys, sells, borrows, or invests has that overall feeling of unease. And there is no fast, fast relief in sight.”(1)
“Nothing in memory has prepared consumers for such turbulent, epochal change, the sort of upheaval that happens once in 50 years. That may explain why so many voter polls, taken as the economy shudders toward the November election, reveal such ragged emotional edges, so much fear and misgiving. Even the economists do not have a name for the present condition, though one has described it as "suspended animation" and "never-never land."” (2)
“Retirees today are fretting over shrinking nest eggs, and workers wonder when they'll ever get to rest.” (3)
“But Americans have a new menu of economic woes — among them a real estate crash, a credit crisis, a broken healthcare
system and nagging job insecurity.” (4)
If the gloom and doom headlines about the American economy seem never-ending, if there doesn’t seem to be an end to the economic turmoil we are in, take heart. The economic issues that many of us are worried about aren’t new. Today’s headlines may feel like something new, but looking at the past, it is clear we have been here before.
The headlines above sound like news stories from the last 6 months. They are actually from Time Magazine’s Cover Stories…on September 9, 1974 (1), September 28, 1992 (2), July 29, 2002 (3), and May 26, 2008 (4). No one can tell you what the future may look like, but we can look to the past to get an idea of some good investment tips during this economic uncertainty.
September 9, 1974 September 28, 1992
July 29, 2002 May 26, 2008
The U.S. Economy has seen many Bear Markets that have bounced back. For every bear, there is a bull and for every bull, there is a bear. In the middle of these downturns there was no way of knowing how long they would last or what the recovery would ultimately look like.
There are plenty of things that are making the economy shaky, unemployment, the pandemic, and political uncertainty. Staying focused while the market is uncertain is never easy. Below are some best practices to help you cope:
Just like the headlines above show we have been through many times throughout history that we thought the world was coming to an end
Remain committed to your long-term financial goals
As we have talked about many times, emotions can lead to irrational and impulsive decision making
All investing has risks. You can’t eliminate all risk, but you can limit it and you can defend against it. The important thing is to understand how much risk you can tolerate.
Don’t put all your eggs in one basket
Don’t take unnecessary risks with your nest egg
Don’t burry your nest egg in the backyard or hide it under the bed
Someone who has experience successfully navigating both up and down markets
Stay happy and safe,
Time Magazine stories and covers: time.com/vault