Eve of Destruction

Prepared by the Hardee Investment Group and RBC Wealth Management – 

A funny thing happened on the way to financial Armageddon. The stock market evidently took a wrong turn and didn’t fall off a cliff. When you look back, you scratch your head and ask yourself, “Why didn’t this happen?”

2012 was a year of great uncertainty and anxiety. It was a year of politics with a presidential election. That means two different views, two sets of accusations and a lot of high profile media exposure. Month after month of constant bombardment is a form of brainwashing. Our anxiety continued to build. This was directly measured in the sale of firearms in the last months of the year. Also, we had dire predictions of a fiscal cliff, a debt ceiling and sequestration. Let’s not forget a potential increase in taxes from 15% to 40% for dividends and capital gains. Add it all up, and it’s a very scary picture. What’s an investor to do? Sell everything and hide?

Hindsight is 20-20. The S&P 500 was up 13% in spite of all the dire predictions. Sir John Templeton famously said, “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” Last year was a classic example of this. In retrospect, it was easy to say, hard to do.

In our past articles, we have used greed and fear as learning tools. Emotion is the greatest destroyer of wealth known to man. Fear of the unknown caused many investors to see only what couldn’t be done. In reality, housing is recovering, jobs are increasing, corporate profits are up, and America is back as the low-cost producer of energy. The next decade could be a lot of fun.

There always seems to be a financial “Armageddon” or a reason not to invest each year. There’s a lot of information out there, and most of it is intimidating. Information is not knowledge. Let us distill this information into actionable knowledge for you. Visit us online at HardeeInvestmentGroup.com at your convenience. While you’re there, take a moment to request a copy of our Family Emergency Workbook so you’re more prepared for the next “Armageddon” or familial emergency.


 The views presented herein are solely those of H.H. “Will” Hardee, and do not necessarily represent the views of RBC Wealth Management. Current status of issues discussed in this letter is subject to change based upon market conditions and industry fundamentals. Clients should work with their Financial Advisor to develop investment strategies tailored to their own financial circumstances. Past performance is no guarantee of future results. The name Hardee Investment Group refers to a group of Financial Advisor working in the Houston, Texas office of RBC Wealth Management. The Hardee Investment Group is not a separate legal or corporate entity. All services offered and all memberships referenced in the presentation refer to the services offered or registrations held through RBC Wealth Management. RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC.