How about that. Another decade in the can. I can barely remember sweating out the potential crisis of Y2K on New Year’s Eve, listening to Hootie & the Blowfish. Twenty-years ago, who could’ve predicted Darius Rucker would have a successful country music career, and that Hootie and the Blow Fish would be back touring after a decade hiatus.
But it all comes back around. And here we come roaring twenties.
How about a quick recap of 2019.
The Dow, those 30 large, so-called Blue Chip companies that most folks take to mean the whole stock market…up a touch past 22-percent on the year.
The 500 biggest companies as measured by the S&P 500 index…up nearly 29%,
And the technology lead NASDAQ index gained a nice 35% for the year.
But a year ago, how many so-called professional economists were touting these kind of gains. If you remember, things were a little bleak after the 19.8% peak to trough decline through Christmas Eve 2018. But all was forgiven as we made up lost ground by April’s end and then some.
But we knew it didn’t matter what the market did that month, or quarter, or even for the whole year. We’re investors. Not speculators or traders. Any short-term time period or crisis du jour would not sway us from our long term goals and life-long investing focus.
There’s certainly nothing wrong with being aware of the latest breaking news on trade, earnings, employment, and impeachment. And there’ll be more Trump trade tweet triumphs to talk about…not to mention an election.
And so we reaped the rewards of our patience and persistence last year. While others pulled billions from mutual funds, we stayed the course. And we’ll stay the course again.
We don’t know what the market will bring in 2020. And we don’t pretend to. And just because the guest of the day on the business channel makes a compelling case for…who knows what…remember what John Kenneth Galbraith said about economic forecasting: There are two kinds of forecasters, those who don’t know and those who don’t know they don’t know.
We know we don’t know. And we know, it doesn’t matter. Our job, your job, is to be the best manager of the assets you’ve been entrusted to manage. Responding and reacting to the over-hyped crises of the 24-hour new cycle does not qualify as being the best manager of assets.