Googins Newsletter
October 4, 2024
We talk with 3-4 callers each week who worry about the upcoming Presidential election. Watching and working in the securities area for nearly 50 years, I can affirm the answer has been the same through the years. Stocks continue to trend upward through both Republican and Democrat tenures.
You are building long term wealth and security through the stock market that allows you to withdraw what you need each year. This requires compounding – which you must not interrupt. Never give up and pull out of the market. You own quality.
Holding on, staying invested, is a battle that is fought and won through persistence and toughness; it compares with George Washington’s Christmas surprise trip over the Delaware River in 1776 and the six Marines who raised the US flag on Iwo Jima in 1945. They never gave up, they came from behind.
Each bounce back and recovery you experience from stock market panic by others should make you stronger and more sure of each recovery.
We have seen countless stories detailing problems and recommending solutions. The problems may be true but you, personally, cannot make corrections and change the market. You can only hurt yourself by trying to outsmart the market and move your money in or out. Once someone moves out of the market, there is another difficult decision -when to get back in. When you purchased stocks and a few bonds, you made a decision about your future. Stick with it.
Do you remember 2007-2008 financial crisis -“the Great Recession?” The market was down 50% for many accounts. But on 3-9-2009, the market reversed. Had you picked that one day to enter or re-enter the market, it would have been something you would have talked about forever. The market came roaring back rewarding the people who knew it would. The S&P was up 30% by mid-May and over 60% by the end of 2009. If you missed that day, when would you get back in? It is the one day we expected with no idea when it would occur. But it did occur as the markets have done many times over the past hundreds of years, the long term.
Vote in the Presidential election. Mail your ballot or go to the polls. Understand that politics or geopolitics are about current issues which shift rapidly ignoring the long-term truths about the market which endure. Market volatility may increase dramatically with the election but then get back to “normal.” The tide always comes back in. Remember the assault on the Twin Towers in New York in 2001 and the awful days of the 2008 financial crisis and how the economy has grown since then. There is good happening; remember that.
I am in the office less. I hope to continue to write more newsletters and blogs. I am proud of the people working for Googins Advisors and the gains we have made over years of effort. Our employees will continue to offer you good advice. Please call; no question is unimportant. Money is just one form of financial security and freedom from bias. Thank you for your support and please continue to recommend us to people you know.
Sincerely yours,
Louise Googins, President, Investment Advisor
Michael Googins, Administrator
Kim Rankin, Accountant
Richard Martin, Investment Advisor
Lynne Goldsmith, Investment Advisor
Dayton Hoffmann, Investment Advisor
Katie Gunderman, Intern