Money Monday!

“Prediction is very hard, particularly when it’s about the future.” – Yogi Berra


The graph below from Raymond James shows significant market growth, but what does it not show?

On this graph, the stock market results during the COVID-19 Pandemic look like a small “checkmark” at the end of the line in the context of the strong 80 year performance of the S&P 500.  In real life, the thought of a global pandemic that could cause unprecedented damage to the economy was frightening for investors.  It was more than a checkmark.

What we know from the graph is that the stock market has recovered from every major crisis it has experienced thus far.  However, market crashes happen because investors fear what Sir John Templeton called the four most dangerous words in investing:

“This time, it’s different”

Fortunately, our investment process anticipates significant volatility when the situation feels “different,” and:

  • Every account has a specified purpose for the funds.
  • The investments are highly targeted because we take time to learn about how and when you will need the money.
  • It’s relatable-  Investors are sometimes drawn to complicated investment processes without understanding them.  The beauty of our process is in its clarity.
  • Considers Investor Behavior-  If an investor pulls out of the market at the wrong time, the results can be very costly. A key part of our process is educating our investors around the risks of investing so they can keep a long-term focus.
  • Considers cost-  An important factor in investor returns is the internal expenses of the investments you use. We seek out low-cost funds in an effort to help drive returns.
  • It’s Nimble- We use sophisticated portfolio management software so that we can execute changes when we feel market conditions are favorable to do so.

In summary, Yogi was right.  Predicting the future IS hard.  If it were easy, everyone would be doing it.  We don’t have a crystal ball, but we have a solid process, and we appreciate our clients’ continued trust in us and our process!

Any opinions are those of Wheeler Financial LLC and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected.