I remember being a kid and reading the book “Stone Soup”. The book was about a traveler who came to a village and put a stone in a pot of water because he was hungry. He told people he was making stone soup, and they could enhance it by adding various ingredients. As he spun his tale, the villagers each added things to the soup (vegetables, a ham bone, etc.) and the traveler fooled the people into making a hearty soup from all of their contributions.
The current market environment kind of reminds me of a “stone soup” - there are some many different things being added to the pot from so many different places - concerns about policy, politics, global growth, interest rates, and much more. This simmering pot full of stuff caused a rocky end to 2018 and 2019 is off to some rollercoaster rides as well.
As investors, it can sometimes be tempting to toss our own contributions into the “stone soup” - emotion, crowd-think, fear, knee-jerk reactions. This is when it is important to “season” your soup with information, strategic thinking, facts, and planning (as well as a qualified professional to help you “stir” the recipe).
LPL Financial’s Research Department published “Outlook 2019: Fundamental, How to Focus on What Really Matters in the Markets” to help us focus on what’s important. You can access it here: https://lpl-research.com/outl…/2019/Outlook_2019_Spreads.pdf
I hope you find this a helpful “ingredient” and invite you to also visit the LPL tab on my website www.capitalfinancialplanning.net to access weekly market and economic commentaries. If I can be of assistance to you with any questions or concerns you might have at this time or in the future, please do not hesitate to reach out to me.
Eat up, your soup’s getting cold.
The opinions are those expressed by the author. Seek professional advice before taking any actions in regard to your finances.
Todd A. Slingerland, CFP®
6 Tower Place Albany, NY 12203