October 11, 2023
“This Time It’s Different”
“No, This, Too, Shall Pass”
When you buy stocks, you should know you are holding quality stocks that fall and then recover. Expect this to happen many times while progress is made toward a larger and bigger cash value. You can get stronger with every experience.
I understand the thinking “This time it’s different.” Sometimes it seems there is much bad news to learn about with problems you do not remember hearing about previously, but as President Harry S Truman stated, “There is nothing new in the world except the history you don’t know.”
The Stock Market Provides Inflation Protection!
The success of the stock market is based upon the companies that have been selling you favorite products thereby increasing the market value of the stocks because you and millions like you use the products consistently. People ask about inflation – ownership of stocks is inflation protection! It is a great strategy – you buy what you need and like and then receive dividends and growth in a personal account that holds the stocks you purchase. As your financial worth grows, you are able to continue to buy the items you need and frequently you have gained even more than you “need.”
The yearly average of US stocks is about 10.1% over many year averages. That is the average, some accounts have performed better. Theoretically this averages the total number of accounts available, and, ‘better than average’ accounts can be discerned, helping Googins Advisors to use those accounts for our clients.
Nick Murray reminds us of the past fifty years in his October Advisor newsletter. The S&P reached a high in 1973 followed by problems and a bear market. There was the Watergate crisis, the wars in the Middle East, Cold War, the 1987 Crash, Enron scandal, Asian contagion, dot com bubble, 9-11, debt crisis, Covid…..
The high reached by the S&P in 1973 was followed by a low in 1974 where the S&P index was down 48% from that high. But you know the rest of the story. The S&P has gone through other peaks and valleys since then and is decidedly up. The problems were resolved or disappeared! There are no guarantees but the story of buying quality and holding is much better than the story of worry with attempts to beat the market by selling and rebuying later.
Add to Your Accounts now While Problems are Plentiful!
Ameritrade is now known as Schwab
The complete renaming of Ameritrade accounts to Schwab has been ongoing and sometimes annoying. We thank you for your patience and please continue to call us for help when you need it.
Sincerely,
Louise Googins, President, Investment Advisor
Michael Googins, Administrator
Kim Rankin, Accountant
Richard Martin, Investment Advisor
Lynne Goldsmith, Investment Advisor
Dayton Hoffmann, Associate