May 2022 Newsletter

This is the time you have been training for…this is the time we have hopefully prepared you for. The market has dropped and dropped a lot on Wednesday. We “love” the market going up and sometimes we begin to feel it will not end. But it does end because it always has, and then again, when we least expect it, the market starts back up again.

That is why you stay invested; the dangers of getting in and out of the market are far greater than staying invested. We can show you true story after true story of staying with the market and the good results that follow. Net invested lays it out.

I’ve been through several Bear Markets, number uncounted. I wait for the sun and it always comes back out again. There will be events you and I could worry about: covid, crypto currency, inflation, war in Russia-Ukraine, price of gas and other weekly worry topics presented by the media. Googins Advisors works to educate people on the wonders of the stock market and the wonderful returns people do really earn. Please pass the word on although you’ll be told on occasion that what you are saying is not possible. But you know it is.

Yesterday reminded me of the 1987 Crash. The market had loss days on the preceding Thursday and Friday and people wondered what would happen on Monday. We did not have televisions in our offices and there was no constant checking of the markets on our phones. The market gave people what they worried about as the DJIA dropped another 22.6% and the S&P dropped 30%. And then it was over, no awful additional days followed and it seemed worry was greatly decreased by the end of 1987. Within two years the market had surpassed its high value of August 25, 1987 and the great Bull Market marched on. No one can tell you with a straight face why it all happened or whether all the measures that were added corrected the situation. It is the way the market works and if you concentrate on high quality issues you won’t escape the excesses of the market, but our experience is you will earn a good return.

Corporations have problems and yet today they hold almost the highest amount of cash ever, a time honored method of protection. They have paid dividends to shareholders and bought back shares. It is difficult to find workers but shelves are being re-stocked. Our import/export trade deficit widened but shows the increased shopping needs and wants of the U.S. citizen.

It is said that the US has recovered faster from Covid than most other countries. We have a huge need for homes and apartments and we can observe the resultant building. From 1926 to 2021, the S&P 500 Index has averaged 10.4%. Choose a shorter time period but greater than ten-fifteen years and you will usually find 10.4%. It’s like magic, but you must stay invested.

The attached article lists events of the past years which were catastrophic and I am surprised by how much I have forgotten. Suddenly the idea that “it’s worse this time” does not fit; we have survived many a catastrophe and the market continues on and helps those who help themselves. Read the article which follows: Exhaustion is Not an Investment Policy.

This is the time to add money; it’s bargain time! Please call us for additional information.


Louise Googins, President, Investment Advisor
Michael Googins, Administrator
Kim Rankin, Accountant
Richard Martin, Investment Advisor
Lynne Goldsmith, Investment Advisor
Kyra Meach, UW-Madison Intern
Dayton Hoffmann, UW-Madison Intern
Alex Kahlenberg, UW-Madison Intern