The most obvious form of non-value added stress in markets right now is the potential for a Federal government shutdown. It is dominating the headlines as our elected “leaders” continue to play a game of chicken. We were dragged through the mud on debt ceiling negotiations earlier this year, so we really shouldn’t expect different, I suppose.
During a recent client meeting, the individual we were speaking to brought up a very interesting concept: non-value-added stress. The idea is that we worry a lot about things that don't add positivity to our daily lives.
With children across the country returning to school and college expenses continuing to tick up, we have received many inquiries related to college planning. Many of these questions center around how to best fund future and current college expenses, negotiate merit aid, and what resources are available for parents with college-aged students.
Although no client has explicitly stated it, it would be reasonable for there to be similar anticipation of markets returning to their peaks. The last time the S&P 500 closed at an all-time high was January 3, 2022. Since then, we've seen almost 19 months of drawdown. The conversations we've been having with clients have primarily centered around maintaining discipline, with the knowledge that, at some point, there would be a market recovery.
For the first time in a long time, the financial world has a calming sense.
As you have probably seen, recent financial headlines have centered around the debt ceiling. The debt ceiling was created in 1960 as a way to limit government spending. Although the news surrounding the debt ceiling may sound scary, it’s not the first time we’ve been in a position like this. In fact, since 1960, the debt ceiling has been raised 78 times.
Kenny Rodgers once said, “You got to know when to hold ‘em, know when to fold ‘em, know when to walk away, and know when to run” The last part of the tune can be struck through as it is the last thing a prudent and engaged investor would ever want to do. Also, he was referring to a game of poker. Here we are talking about I-Bonds, and unless there is a reversal of the current trend and inflation begins to rise again, the time to walk away is coming.
One reason I find this field of work so interesting is that there is a cheat code to being successful. The problem is that the cheat code is boring, and few people are patient enough to use it.
We live in moments. Sometimes those moments seem to pass by in the blink of an eye, while other times the moments seem to last forever.
That dynamic is an incredible blessing as we spend time with our family and friends, creating emotions and memories that last well beyond the time we actually...
We are pleased to announce the addition of Andi Long, CFP® to the Pitzl Financial team! Andi will be working as an Associate Wealth Advisor on our team, and will be responsible for organization, analysis, preparation, and follow-up for your financial plan.
During the past week, we have seen a return to the volatility trends that were prevalent through much of 2022. The past two trading days have been especially active, with the S&P 500 going negative on the year for a brief period on Monday before ultimately turning positive.
In 1929, at the height of an economic boom in America, Joseph Kennedy Sr. (father of JFK) was working as a stockbroker on Wall Street. As the story goes, Joseph was walking around when he decided to sit down for a shoeshine. While polishing his shoes, the young worker gave Joseph some of his favorite stock picks. When Joseph heard the shoeshine boy giving out stock tips, he figured the party was about to end, and it was time to get out of the market. Joseph proceeded to exit his positions in the market and bought short positions that bet on the market going down.