Greetings!
Five year stock averages as of last Thursday, March 28th, were 11.48%, 15.17%, 21.06%, 15.91%, 13.36%, 12.20 and so on. We are listing stock averages like the DJIA, S&P500, Nasdaq 100, S&P 500 Growth, S&P 500 Value, MSCI World.
And, during that five year time period, people spent hours and hours worrying about each day…calculating what might be occurring.
Bond yields are “upside down.” Long term yields pay less than short term yields. 3 Month T-Bills will pay 5.362% for 90 days and a 30 Year T-Bond 4.343% for 30 years! That’s the “guarantee” going forward. Hmmmm.
Many of us earned 13.04% in a favorite growth stock fund for the past 5 years ending March 28th and 15.11% for past 15 years. Why does 4.343% sound good to anyone going forward for thirty years?
Do you want to take care of yourself (pay for yourself) as you age? Would it be good for the country if you could? Which vehicle will get you there? Bonds or stocks?
Stocks are why we should study business history! People and investors are fascinated by business and many love the “rags to riches” stories. But how much history do we know? Gary Hoover writes about business in the attached article. “Why Should We Study Business History?” Read it for information learned from businesses.
Googins Advisors Inc works to help people make rational decisions. Daniel Kahneman, a Princeton psychologist and Nobel prize recipient 2002, observed and taught about illogical and punishing human behavior. He passed on recently leaving us with his and a partner’s work in “behavioral economics.” When we suggest you turn off the media, hold your investments through market turmoil, and you do it, you are a good student of behavioral economics. You are also a soldier for good results.
The stock market is a vast and exciting place; we see the good that it can continue to show and build. We appreciate your referrals.
Thank you for reading,
Louise Googins, President, Investment Advisor
Michael Googins, Administrator
Kim Rankin, Accountant
Richard Martin, Investment Advisor
Lynne Goldsmith, Investment Advisor
Dayton Hoffmann, Associate