A spooky October

Hurricane Helene. Unnamed tropical disturbances. Iran firing missiles into Israel. Dockworker strike. Upcoming election. Debates and press conferences. Now insert anything in your life that causes or enhances uncertainty and poof – you’ve got a spooky October. Congratulations!

Actor Vincent Price once said, “It’s as much fun to scare as to be scared.” I have a pickleball friend near Nashville who owns a haunted house business, and he makes a good living scaring people this time of year with chainsaws, dark rooms, and faux blood. It’s amazing that human beings derive pleasure from being scared – to a point. And people really do get a kick out of being the person scaring another person. 

This highlights to me that it takes two people to tango – both are willing to have a meeting of the minds and share a common location, and they both feel they have something to contribute and something to obtain. You’ve heard the old saying, “One man’s trash is another man’s treasure.” This is highlighted every day in the investment markets. What one person sells because he thinks it’s time to get out is another man’s purchase because he thinks it is time to get in. What does your investment track record reveal about your money-making instincts and your ability to make unemotional and sound investment decisions?

A certified financial planner practitioner earns his keep when he (or she) coaches his clients through the headlines, distractions, emotions, and action-worthy items presented on a daily basis. The same set of information can bring about a myriad of reactions from people based upon their current situation, goals, risk tolerance, and timeframe. A person needing a large amount of cash in six months to pay for college, fund a medical procedure not covered by insurance, or help a family member through a tough time will certainly view current events in a different light than a 30-year-old investing in a 401(k). The former does not have the time to make up any short-term declines in value, and the latter is actually cheering for the market to go lower in the near term so that she can buy shares cheaper through payroll deduction.

The points made in the opening paragraph might cause many people to just leave money sitting in an FDIC-insured bank account. Some people are frozen by “analysis paralysis” – the amount and frequency of conflicting information has caused them to do nothing – which may have cost them and their families a lot of money. They’ve spooked themselves into a corner and may be at a disadvantage in the battle against inflation and taxes. A personalized financial plan helps bring clarity to one’s situation and allows a laser to be focused on the things that really matter in the near term and the long term. Now may be a good time to face one’s fears with information and statistical evidence so that the need to be fearful can be left for others to enjoy. 

Gulf County resident Walter L. Woodrick is a certified financial planner practitioner, and the author of two books. His website is WoodrickFinancial.com, his phone is 1-855-WOODRICK, and his text number is 850.724.1369. Securities and advisory services are offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. #640160-1