Five years ago this week, the Dow Jones Industrial Average retreated to its low of 6,547.05. Think about that.
Undeniably, the economic outlook at the time was perilous. Concerns persisted long after that dark day in March of 2009. One year later, I was speaking at the MENSA annual gathering and my presentation was titled, “The Global Economic Outlook: Depression or Bipolar Disorder?” (I suggested that the economy would recover and not slip into a depression.) It was a period of maximum anxiety and uncertainty, at least for the present generation.
As of this writing, the Dow Jones Industrial Average is perched around 16,400. Logically, it was probably predictable, but certainly not from an emotional perspective.
The lessons?
Be informed. Do not let your emotions and impulses rule you. Have a well thought out plan and stick to it. Discipline.
We are humbled by the trust and confidence that our clients placed in us then and now, and we do not take it for granted.
We are pleased to have been able to steer their portfolios through that most difficult of times with what we believe to be a successful outcome.
All comments and questions are welcomed.
Bob Bilkie, CFA