Over the last couple of months, we have seen so much uncertainty and volatility in most, if not all, asset classes. Watching CNBC and all its pundits and guests, you would think the world is coming to an end and the market so very treacherous (Jim Cramer’s word of the day). Then the very next week, the same pundits and “experts” are saying it’s time to buy “risk assets,” and the market is undervalued. One week, Greece is faltering, the next week, Slovakia votes “yes” and all is well again. Reminds me of the definition of insanity; doing the same thing over and over again expecting a different result.
As receivers know in football, you have to watch the ball into your hands. I tell my son over and over again you have to ignore all the “noise” going on around you and focus on the ball. Don’t take your eyes off it. If you lose focus, the play and strategy fall apart. I know this metaphor has been used before, but I feel it is more important than ever. Whether your “ball” is sustaining your retirement cash flow, growing your portfolio through dividends and interest, or just protecting your capital by doing a bit better than money markets and CD’s, just stay focused and don’t let the day-to-day “noise” change your game plan. Lastly, my son caught that pass in the picture and ran ten more yards for the go-ahead touchdown…….just like his dad taught him.
D. Whitehurst (Managing Partner)