The Last Four Years

Prepared by the Hardee Investment Group and RBC Wealth Management – 

No, this is not a political comment. This is about the word anxiety and how it’s affected investors.

Ever since the bankruptcies of General Motors, AIG, Lehman Brothers and the major collapse of our banking system in 2009, investors have been looking over their shoulders waiting for the other shoe to drop. In many cases, it seems investors are suffering from a form of post-traumatic stress disorder. This trauma or stress has investors second-guessing every move and running for cover at the first sign of perceived trouble. Call it a flash back to 2008-2009.

In my opinion, the stress and trauma of 2008-2009 was the worse since the 1973-1975 recession, which was the worst since the late 1930s. In other words, it occurs every 30 to 40 years. Yet, we are still reacting and looking for “after shocks.” Stocks have doubled, and interest rates are near zero. Investors have flocked to bond funds for safety, even though they pay the least they’ve paid since 1980. Nobody wanted bonds at 17 percent in 1980 because of inflation fears. Now everyone wants them at 2 percent for 20 years.

Anxiety lets emotions drive our actions and color our judgment. Sir John Templeton, who many consider to be the finest investor of our time, removed himself from emotional investing. He didn’t live in New York City or frequent Wall Street. He did not watch TV or let emotions make his decisions. He was at his best when doing the opposite of “conventional wisdom,” and there are opportunities in every market. Sir Templeton’s last great vision was selling short “” stocks at the height of their popularity in 2000. He died a billionaire, leaving his money to charity.

Sir Templeton believed in identifying long-term trends and having conviction to follow through. It didn’t happen immediately; he allowed time to be his ally, not his master.

We can all benefit from Sir Templeton’s lessons. An example of this is our view that this decade will belong to energy users, not energy producers. This theme will become more obvious in the next few years, but America is the low cost producer of energy, and American industry stands to benefit for years to come.

Ready for the next four years? Or does anxiety still have you looking over your shoulder? When you’re always looking back, it’s hard to advance and plan for the future. Allow the Hardee Investment Group to help you feel more secure with your portfolio. By keeping you well educated about your investments, we help restore the trust and confidence that may have been lost. Give us a call today at 713-853-0879 or visit us online anytime at will pass whether you’re confident or not. Don’t let the next four years pass you by without the assistance of the Hardee Investment Group.

This article is provided by H. H. Will Hardee, AWM, Senior Vice President, Senior Portfolio Manager- Portfolio Focus, a Financial Advisor at RBC Wealth Management’s Houston Center office, and was prepared by or in cooperation with RBC Wealth Management. The information included in this article is not intended to be used as the primary basis for making investment decisions nor should it be construed as a recommendation to buy or sell any specific security. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance. RBC Wealth Management does not provide tax or legal advice. RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC.