Common Sense Investing… Are You Missing Out?
Issue 11.10
I recently returned from an annual fact finding trip to one of the companies where I invest money for many of my clients. This particular investment has delivered solid returns even during the recession. As I reviewed the firm’s financials, and discussed the bright prospects for the years ahead, I felt a little sorry for those who have missed out, and will continue to miss out because they have allowed their decisions to be governed by fear. I believe human emotion to be an investor’s worst enemy. It leads to poor decisions and makes us vulnerable to those who can use that fear against us.
I am not blind to what is going on in the world. I realize there are great challenges and our government appears to be somewhat clueless. But I also know that with great challenge comes great opportunity. In 1982 I was living in Las Vegas. With mortgage rates at 18% and construction at a total standstill, I made the decision to build my first home. The world was scared then, but I saw in that fear a wonderful opportunity. I purchased a partially framed and abandoned house. The recession provided cheap labor and materials and in a short time I was living in a beautiful new home. Though the lights were literally out on the Las Vegas strip, I was confident they would come on again. It wasn’t long before interest rates started dropping, the recession ended and my home skyrocketed in value.
If you listen to the daily talk show hosts you will be tempted to build a concrete bomb shelter in your backyard and hide there – with your gold bricks. I for one have no interest in living my life in a cave. And even though a gold coin is pretty, you can’t eat it, heat your house with it or wear it. It doesn’t get bigger, it produces no product and it has never paid a dividend.
I spend my life studying markets of all types and I find much more good than bad in the years to come. I believe there are opportunities today as good or better than any I have ever seen. To be a successful investor does not require a perfect world, just opportunity. I can tell you that while much of the world worries itself sick, smart investors are quietly gobbling up valuable assets. The clients of Wyson Financial are among them.
Dan Wyson, CFP® is author of the book “21 Financial Myths” and owner of Wyson Financial. 1173 S. 250 W #305 St. George 435-986-9525 – Securities offered through LPL Financial member FINRA/SIPC
