Posted on Jul 30, 2014 in
FOCUS ON FINANCE
Presented by the Hardee Investment Group and RBC Wealth Management –
It seems like every time I turn on the TV, radio or read the paper, there is always a negative response to economic news. I started thinking about this, and it drew me back to the 2008 financial problems. When the Troubled Asset Relief Program (TARP) was first proposed in the fall of 2008, it was ridiculed. When quantitative easing starting, it was ridiculed. Amazingly, even as the Federal Reserve lowered interest rates to zero percent and pumped billions of dollars into the financial system to stave off a depression, all we heard from the experts was fears of inflation.
For a while, it seemed as if President Obama was on course to brutalize and destroy big banks and corporate America. We all heard ObamaCare would bankrupt the country. Even good news in the energy world about large new oil and gas shale discoveries was met with negative views on fracking and global warming. What’s happened to the optimism of America? Why all of the negative reporting?
Fast forward the events mentioned above to present day. In spite of the naysayers, inflation is low, the stock market is at an all-time high and America is once again becoming a dominant force in energy, which brings a strong economy with it. By the way, unemployment continues to decline, the deficit is slowing and our balance of payments has materially changed. How did you invest your wealth over the last six years?
It’s hard to be a successful investor when you let news headlines and emotions drive your decisions. If you had listened to all of the above news, you’d have missed a great time to invest in America. There will be many more periods of uncertainty in the future. How you react to them will be key to your financial success or failure. Buying low and selling high sounds easy, but when prices are low, news is usually bad. Good news can come with a high price.
Let us help you understand how your emotions can affect your investment decisions. Call us today at 713-853-0879 or visit us online at HardeeInvestmentGroup.com to learn more about the driving emotions behind investments: greed and fear.
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. RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC.
