Why your financial plan is like a marriage
Hello Eagle Wealth Community,
It’s almost Valentine’s Day so we’ve been thinking a lot about relationships. Your investment strategy is sort of like a marriage. One day you may feel like everything’s going swimmingly. The next day, there might be a Sherlock Holmes type investigation as to who didn’t load the dishwasher, and if they did, was it even done properly. And even the best marriages and partnerships have moments where one or both partners look around and ponder, “What if I’d gone through with astronaut training? Or pursued that Disney On Ice tour? Would I still be here today?” We sure hope so!
The stock market, much like a marriage, has days of ups and downs. Just look at what happened within the last few months. During the first week of January 2021, the S&P500 stock market index fell 2.7% on Monday, only for that downturn to be erased and post a 4% gain from that low by Thursday. And so, much like our relationships, we love to see a rise from the lower-left corner to the upper-right corner for market gains, and likewise for relationship gratitude over the years.
Trying to make sense of the market and the economy during a pandemic is like trying to determine the health of a long-term relationship based on one day. The market may be fickle, but it’s important to remember that your financial plan was created based on your aspirations, time horizon, and risk tolerance. This is why we focus on financial planning and not only on investments. The best plans (and marriages) are built for the long run, committed to communication, and consideration of the big picture, and not just the current events.
This Valentine’s Day take time out of your day-to-day routine and do something special with your significant other. And if you’re solo this year, do something kind for yourself. Find a little laughter or maybe enjoy some quality time with a friend.
From Your friends at Eagle Wealth
State of the Markets
It’s that time of year again for the State of the Markets update. There is no shortage of opinion about the current economic climate. Between headlines and talking heads we could all use a fresh perspective. That’s why we’re going straight to the source and sharing City National Rochdale’s 2021 economic outlook.
The City National Rochdale investment team, led by CIO Tom Galvin, discuss the firm’s outlook for financial markets amidst a challenging landscape of economic uncertainty.
They answer big questions like:
- COVID-19, vaccine progress, and prospects for recovery.
- Will the rally in equities continue?
- Key sectors and themes for a post-pandemic world .
- How central banks, global monetary policy, and low interest rates might impact the search for yield.
Run time: 45 minutes, 50 seconds
If you have any questions about what you’re seeing in the news, please give us a call. We’d welcome the chance to discuss the economy with you.
The Wall Street Journal, February 5, 2021
2. The Wall Street Journal, February 5, 2021
3. The Wall Street Journal, February 5, 2021
4. The Wall Street Journal, February 5, 2021
5. CNBC, February 4, 2021
6. IRS.gov, October 7, 2020
7. PsychCentral.com, July 8, 2018