October 9, 2019
A wave of uncertainty has swept the nation. Is the trade war going to continue? Is the Fed going to raise or lower interest rates? Is unemployment going down? Is inflation present? Are we going to go to war? Who is going to win the next election? There are many more questions and speculation circulating. How does one go about addressing all these questions in light of uncertain times?
Can anyone accurately predict future events? Financial advisers can read a variety of publications yet come to different conclusions. Numbers can give you a perception, yet the wind of emotion can turn the tide. Experience can give valuable insight, yet only a handful of individuals identified the 2008 meltdown prior to its occurrence.
You could flee to safety and keep your money in cash or a bank account to avoid uncertainty. The trade-off for that is you lock in a loss due to inflation. Inflation is currently at about 1.5%.
Remember the man who chose to hide his talents? His master took everything away from him and gave it to the two others who did something productive with theirs.
In addition, it is very difficult to “time” when to put your money back in to the market.
Therefore, I would conclude that it is best to have an investment plan. Your investment plan should align with your investment philosophy. In these times of uncertainty, you should consider sticking to your plan.
Of course the actual verse from the Bible is more impactful:
Matthew 6:26 New International Version (NIV)
26 Look at the birds of the air; they do not sow or reap or store away in barns, and yet your Heavenly Father feeds them. Are you not much more valuable than they?