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The following presentation by New England Capital Financial Advisors, LLC (“NECFA”) is intended for general information purposes only. No portion of the presentation serves as the receipt of, or as a substitute for, personalized investment advice from NECFA or any other investment professional of your choosing. Please see additional important disclosure at the end of this penetration. A copy of NECFA’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.newenglandcapital.com.
Uncertain Times Are Nothing New—Perspective Makes All the Difference
Hello, this is Chris Beale senior advisor and founder of New England Capital.
“It is a gloomy moment in the history of our country. Not in the lifetime of most men have there been so much grave and deep apprehension, never has the future seemed so incalculable as at this time. The domestic economic situation is in chaos… Prices are so high as to be utterly impossible. The political cauldron seethes and bubbles with uncertainty. Russia hangs, as usual, like a cloud, dark and silent, upon the horizon. It is a solemn moment. Of our troubles, no man can see the end.”
Before you think I’ve become totally pessimistic and lost all hope, let me explain that those are not my words. I would like to thank Chris Davis, portfolio manager of the Davis Funds which seems to capture the current mood for many in our country. But those are not his words either. In fact, this quote comes from an article in Harper’s Magazine in 1857! Harper’s Magazine is the oldest continuously published magazine in the US. It was started in 1850 and has won 22 National Magazine Awards. Through its history, it was considered one of the most prestigious publications with contributors like Mark Twain, Herman Melville and Winston Churchill.
Let me take a step back to explain what a magazine is for my kids and their generation who may not be familiar with magazines. A magazine is a publication that comes out less frequently than a newspaper and typically covers a topic or area of interest in more detail than a newspaper. OK. A newspaper is printed publication (usually published daily) containing news or editorials. Both magazines and newspapers differs from Tik Tok which is a social media platform where some get their news from 60 second videos frequently set to music.
My point is the political and economic chaos and uncertainly we feel now is not without precedent. If people felt this way in 1857, how much better should we feel now. We have electricity, running water, and indoor plumbing, cars and mass transportation. Communications were slow and tedious versus instantaneous today. The political climate was extremely tense leading up to the Civil War.
The clients we’ve talked to over the last month or so have been very distraught over the economy and their accounts. Many have told me they have been afraid to look at their statements. Many have also been pleasantly surprised to find that while the stock market is down about 3-4% year to date, their accounts are actually up slightly for the year as I write this.
Do we have problems today? Of course. Have we made gains from the 1850s? Of course. Even in the last several decades, our advancements have been remarkable.
I have a few charts to remind us that while we can feel badly, there are many things that we can look to with realistic optimism. Hunger, childhood death (children dying prior to their 5th birthday) and child labor are all lower over the past few decades. Lest we despair over climate change and think that issue is hopeless, I refer you to the chart on Ozone depletion since 1970.
We certainly have problems that need to be addressed and solved. But that’s what humans have done, and I believe, will continue to do. I don’t know what the future will bring. I don’t know what the rest of this year will bring. But smart investing can overcome the power of emotion by focusing on relevant research, solid data and proven strategies. Creating and adhering to a thoughtfully constructed financial plan is one way to avoid the urge to let emotions during times of market turmoil, or economic and political uncertainty derail our financial goals.
Please let us know if we can help you through these uncertain times.
And in case you missed our last email I want to make sure everyone know about Chris Lee’s award. Chris recently was awarded the CT FPA Lifetime Achievement Award. This award was given to Chris at our Annual conference demonstrated a long-standing commitment to advancing the financial planning profession, mentoring others, and serving the FPA CT chapter through years of dedicated volunteerism. I’d need another 10 minutes to list all his industry accomplishments and accolades. So, I will simply say, Thank you Chris! Thank you for the 32 at New England Capital, working side by side with me; for your dedication to our clients and for your friendship over all these years!
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by New England Capital Financial Advisors, LLC [“NECFA”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from NECFA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. NECFA is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the NECFA’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.newenglandcapital.com. Please Note: NECFA does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NECFA’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a NECFA client, please contact NECFA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.