The nature of investing has changed dramatically in the last decade. Declining interest rates helped propel both stock and bond markets to record gains in the 1990s. Successful investing was easier because almost everyone made attractive returns. Now, successful investing is much more difficult. Lower interest rates, changes in the tax code, and the global investment markets are just a few of the complex challenges facing today's investors.
Since the dramatic rise in the NASDAQ and DOW during 1999 and the equally dramatic decline during 2000 and 2001, coupled with September 11th, 2001, much uncertainty and fear dominates our lives. We are bombarded all day with negative news about terrorism, Iraq, Al-Qaeda, etc. We must ask ourselves one simple question: Do we believe in America and American capitalism? If yes, are we long-term investors or merely savers? Investing by definition means long-term planning and commitment. We can assist you in discovering your investment goals and savings goals. Those two goals are quite different and must be clearly recognized and understood. Now with the collapse of the housing and credit markets, will the DOW ever recover and how long will it take. Do I need to be worried about this index and what does the future hold for long-term investing? Oil is down over $100 per barrel will it stay down? How will the new administrations pervasive economic policies effect corporate earnings and decision making?
Most investment professionals agree on one thing; repeating the phenomenal investment success of the past 15 years will be difficult if not impossible for many individual investors. Successful investing is, by definition, a long-term process, not a one-time event. Today's successful investment advisor must be prepared to build a long-term relationship built on trust and based on responsiveness and accountability.