During this wonderful time of fall weather and festive activities we reminisce of the days of walking the neighborhood, going door-to-door for sweet treats and mischievous tricks.
For investors a sweet treat would be a positive return on investment, and yet the media loves to trick us by stirring the proverbial witch's cauldron with fear and pessimism.
The story of Winnie the Pooh and the Heffalump comes to mind. In the famous story by A. A. Milne the Heffalump appears in Pooh's dreams as a honey-stealing elephant. Pooh's empty honey pots, along with growling noises and nighttime disturbances only heightens his fear and confirm the Heffalump's existence.
Recruiting Piglet, they build a trap to capture the elusive Heffalump. Try as they may, Pooh and his friends are never able to capture one. In fact, they end up catching Christopher Robin in their Heffalump trap instead, who then explains to them that the growling noise Pooh heard was his own rumbly tummy, the sounds outside were Tigger's bouncing, and the empty honey pots were only empty because of Pooh's own appetite.
Pooh believed he had all the evidence needed to confirm in his mind that Heffalumps did in fact exist. Just like Pooh, investors sometimes find themselves in a state of fear and will seek out sources that justify their fears - fear of "losing everything" when the market goes down and fear of "missing out" when the market goes up.
The financial news networks are full of rumbling and confusing jargon, bouncing and flip-flopping ideologies, and empty predictions and forecasts. If there is one thing to remember about the media's message it's this - they are only out to sell advertising and trigger ratings, not give prudent and useable investing advice.
Rise above the fear and uncertainty. Focus on your true purpose for your money and align your life around that. If you find yourself a bit "creeped out" by the ups and downs of the market, give us a call. We will take a stand for you and your American Dream as we coach you through the investing Heffalumps!
"Silly old bear." ~ Christopher Robin