Article provided by Jeremy Taylor, CFP®, ChFC®, November 15, 2017
Thanksgiving is one of my favorite times. My wife and I each have large extended families, so we get a chance to see over fifty people and eat two gigantic feasts. A tradition we started when we had kids was to slow down and have a conversation about what we’re truly thankful for. On that note, I was thinking about how chaotic this year has seemed for many of our clients. When they come in for meetings, we get many questions about the state of the world and its impact on their financial security. I figured it would be good to reflect on what the market is thankful for this year and some of the reasons it’s been strong in the face of much uncertainty. In no particular order:
- low interest rates with a Federal Reserve who is committed to increasing rates slowly
- relatively low inflation
- confident consumers who are spending money on cars, homes, and many other goods
- stronger businesses who are becoming more profitable and in much better shape than years ago
- a relatively slow growth economy that is neither too hot nor too cold
- an expectation of a lower tax environment
- stability, or at least more stability than expected, in places like Europe and China.
There are many things to be concerned about and very little of what is listed above gets any news coverage. After all, it’s bad news that sells. Our belief is that a large reason for the market’s growth has to do with good things that actually are happening. We may be due for a pullback sometime soon, but times aren’t as dire as so many think.
At Mainspring, we are thankful for our clients who trust us to help their families thrive. They are planning focused, have an eye on the big picture and their long-term goals, and work hard at tuning out the noise so they can live their best lives. We are also thankful for such a great team and our family and friends that support us every day. This all has allowed us to grow significantly over the last handful of years.
Personally, I’m thankful to be living in these times. Although there are many things to be concerned or feel sad about any given day, I think we live in an amazing time. Our world is full of thoughtful, caring people who are as bright and entrepreneurial as ever before. At times I may be viewed as overly optimistic, but I have found that to work pretty well for me. Having built my career through some of the hardest markets/economies, I’ve seen the need to give thanks when times are good. But perhaps more importantly, to be thankful for the hard times that give us perspective and teach us many lessons.
Any opinions are those of Jeremy Taylor, CFP®, ChFC®, and not necessarily those of RJFS or Raymond James. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Investing involves risk and you may incur a profit or loss.