Patience, Perspective and Washington
Even if they don't pull the trigger, when someone holds a gun to your head, that's not something you easily forget. --Client
The last few weeks have been difficult for investors. If you only watched the markets, you might wonder what is the big deal? The stock markets largely rose. So what is with Washington DC?
The threat of default on US government debt is a major threat--in theory--to investors all around the world. So, with a gun to the head, the stock markets stood very still and--much to the chagrin of the fearful--exercised great patience as Congress decided the fate of the free world.
Or so you would believe if you watched the news, read the papers or turned on the consistently threatening internet. Fascinating, isn't it, that the stock markets could be patient?
Equally fascinating is that the stock markets, over this period of time, told a completely different story than the news. In fact, volatility this year has been LOWER than average. If you watched news sources, you may be inclined to think the opposite. That people are under greater threats, greater duress, that we are more weak and fragile than we've ever been before. Indeed, the onslaught of information is omnipresent and relentless. And the news that sells is nasty, scary and negative.
From the advantage of one week out, write down how you are feeling. Write down what this Washington-created fabrication of a crisis did to you last week, and the week prior. How did you cope? What will you feel when it happens again in January and February of 2014? And will you choose to trust the markets--where the money is being made and lost--or the media, where money is made when we are afraid?