Hello,

What we’re about to tell you is going to sound crazy… but bear with us because it’s definitely true.

Ready? Here it is…

We get to decide what we focus on.

Hold on… we’ll repeat that in case you missed it:

We. Get. To. Decide. What. We. Focus. On.

When it comes to investing, that means you have a choice.

1 - You can tune into the financial networks, go through endless cycles of “buy buy buy, sell sell sell,” obsess over the latest financial product, and deal with the apocalypse du jour while cycling through all the emotions that come with it.

OR…

2 - You can focus on what actually matters when it comes to investing. And one of those things is time. A very long time: decades.

If you choose to focus on days, you are signing up to make yourself miserable. And for no good reason. There’s no benefit to that. It’s one thing to have pain that leads to gain, but this is just pain that leads to more pain.

On the other hand, when it comes to investing, we actually get rewarded for ignoring the daily noise. As Morgan Housel says in his book The Psychology of Money, “[Warren] Buffett is the richest investor of all time. But he’s not actually the greatest — at least not when measured by average annual returns... His skill is investing, but his secret is time.¹

And you know what Buffett is known for? “Benign neglect, bordering on sloth, remains the hallmark of our investment process.”

Does that sound like the type of guy who is constantly refreshing CNBC?

Remember, you actually have a choice. Days or decades. What’s it going to be?

Until next week,

Your Eagle Wealth Team

The Week on Wall Street

Stocks fell for a third straight week, as Fed Chair Jerome Powell's mixed but upbeat message could not offset the anxiety caused by the Middle East conflict.

Stocks Retreat

Markets began the week rattled by further escalation in the Middle East over the weekend. A bit of good news punctuated an otherwise sour Monday, as a stronger-than-expected retail sales report showed consumers were spending despite rising inflation.^2,3

On Tuesday, remarks from Fed Chair Jerome Powell indicated a shift in thinking—from being confident to not-so-confident about interest rate cuts in 2024. He said rates might need to stay higher until the Fed meets their 2% inflation target.^4,5

On Friday, the markets saw further declines, but investors were somewhat reassured by the perception that Thursday's retaliatory actions in the Middle East were restricted in scope.⁶

Silver Linings

When stocks are in a downtrend, it’s important to keep perspective and realize that markets move in cycles. Here are a couple of bright spots from last week and perhaps some good news that may influence trading in the week ahead:

• While Chair Powell said last week that the Fed may keep rates higher for longer, he also said the Fed does not intend to raise rates for now.
   
• Despite inflation concerns, individuals were in a spending mood in March. Retail sales increased 0.7% for the month, more than twice the consensus forecast.
   
• “Earning season” picks up during the next four weeks. For the week ending April 26, more than 800 companies will give updates on business conditions in Q1.⁷ 

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. Source: YCharts.com, April 20, 2024. Weekly performance is measured from Monday, April 15, to Friday, April 19.ROC 5 = the rate of change in the index for the previous 5 trading days..TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.

Footnotes And Sources

1. https://www.goodreads.com/work/quotes/65374007-the-psychology-of-money?page=2

2. The Wall Street Journal, April 19, 2024

3. CNBC.com, April 15, 2024

4. The Wall Street Journal, April 16, 2024

5. CNBC.com, April 16, 2024

6. CNBC.com, April 19, 2024

7. MarketWatch, April 19, 2024

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

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