When Things Aren’t Going My Way Show 47


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I told you a couple weeks back that I’ve been told I’m a patient person. I’ll admit that probably hasn’t always been said of me. The old adage about patience being a virtue comes to mind.
A virtue isn’t something you are suddenly bestowed. What I’ve found is just because you’re patient today, doesn’t mean that will exhibit patient behavior tomorrow. Being patient requires vigilance. Where I tend to lack patience is with myself.
Last week I told you about the 5k race I planned to run this past week. I’d ran it the previous two years, and I improved my time the second year. However, this year, my third year running this race, I regressed. I’m pictured after the race.
In 2019, my average pace per mile for the three-mile race was 8:06. Which means I averaged running each mile in 8:06 minutes. In 2020, my average pace per mile was 7:36, and this year my average pace was 8:23…
It’s easy for me to become impatient with my poor showing Saturday, but when I consider all the details of my life it makes sense to give myself a break.
In 2019, I ran close to 800 miles. Last year I ran about 600 miles. So far this year I’ve run 39 miles. How can I expect to set a personal record this year? I’ve had different priorities this year.
I did survive the run last Saturday despite the discomfort, and it was fun to accomplish something that has become a tradition for me.
When it comes to financial planning it’s important to have clearly defined goals and judge your portfolio’s progress based on what you and your advisor have pre-determined your goals should be.
Sometimes you’ll hear people say the S&P was up 11% but my money was only up 4.5%. It’s easy to get impatient with that situation.
But when those feelings arise it’s important to fall back on what you are trying to accomplish with your money.
Perhaps, you’re retired, you have a half a million dollars, and you’re needing your money to generate an additional $20,000 in income per year. If that’s the case then the 4.5% you made exceeds what you were attempting. And you may have not taken unnecessary risk on with your money.
Seldom when we become impatient are we considering all the details of a situation. In fact, we are normally only looking at one or two aspects of situation that may have multiple facets. It’s important to step back and take a macro look at the situation.
I love a list and checking things off, but as I write my work list each morning, I find myself sometimes feeling like some of things should have already been done.
Or like this Monday morning our phone system was malfunctioning. I had to wait on the phone for an hour while the technicians tried to fix it. All the while, I’m looking down at my list of things that are not getting crossed off.
As hard as it is, I’ve started trying to reframe these situations and look for the positive in these delays. If you think about it, you can find something good in a lot of situations. The late speaker Zig Ziglar pictured below.
One of my favorite speakers, Zig Ziglar, used to say “Good things come to those who believe, better things come to those who are patient and the best things come to those who don’t give up.” Warren Buffett pictured below.
Warren Buffett, the famous stock market investor and billionaire, developed a stock market indicator that came to be known as the “Buffett Indicator.”
From Carmen Ang, a writer at the website Visual Capitalist said, “This ratio, now commonly known as the Buffett Indicator, compares the size of the stock market to that of the economy. A high ratio indicates an overvalued market—and as of February 11, 2021, the ratio has reached all-time highs, indicating that the U.S. stock market is currently strongly overvalued.”
How this ratio is calculated is by dividing the value of the stock market by gross domestic product (GDP). The article states that the ratio is sitting at 228% which is 88% higher than historical averages.
The article went on to state that the low interest environment is one culprit of the ratio being so high. If you enjoy charts, you may enjoy reading the article linked here.
With alarming news like this, it’s important to understand the “why” in how you are invested. Then you can know if your allocations are correct for your purposes.
If you haven’t evaluated how your portfolio is allocated lately, I’d be happy to review it with you and evaluate whether you’re likely to meet your goals or not. If you’d like to talk through this, please respond to this email or call our office at 864.641.7955.
Until next week,
David C. Treece,
Financial Advisor
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