It’s All Cyclical

Greetings! I trust that this will find you well and enjoying life.

We live in an era of hyper information and we are well served to examine the effect it has on us. Media sources are vying for our attention and will go to almost any length to gain our following and allegiance. Media influence on our lives is only going to become more influential because it’s big business. Computers, phones, tablets, watches… what’s next… beam me up Scottie? Don’t get me wrong there’s a lot of good to it, but one has to keep it in perspective to stay balanced. To me it’s a matter of attention and how much we need to pay to it to manage life in a healthy way.

One example is all of the media hype about the market gyrations since the beginning of the year and for the last two years for that matter. The nature of markets is that they expand and retract as they’re based on demand and consumer confidence. Markets and asset classes are totally cyclical in nature as is much in life. Tide rolls in tide rolls out, the earth turns every twenty four hours, spring follows winter, winter follows fall, fall follows summer, summer follows spring every year and that cycle which lasts 365 days begins again. Cycles rule the financial world as well. Stocks cycle, bonds cycle, precious metals cycle, real estate cycles; all asset classes cycle. It’s all occurred in the past and it will all happen in the future. Your planning should be based on that awareness and reality, not media hype.

Frankly, so much of the media’s approach is about fear and dependency on them that it’s scary when you really think about it and the effect it can have on you. What’s the solution to the bombardment of information and ongoing hype? A financial plan that matches where you are in life and the planning strategies and disciplines that apply to you in the financial era you are in. I’ll outline the specific eras as I see them next week.

Stay positive and don’t hesitate to call if you have questions about the markets, the economy or your financial plan.

Best regards,

Jeff Christian CFP, CRPC

Leave a Reply

Your email address will not be published.