Amid political turmoil, who’s really driving the bus?
By The first financial advice I got as a child was from my grandfather, and I remember it vividly. He said, “David, it doesn’t matter which party is running the country. What matters is investing in the right companies. Politicians come and go, but corporate brands are here to stay.”
At the time, he was referring to great brands like 3M, Coca-Cola, IBM, McDonald’s, and Johnson & Johnson. And while many of those companies have had their ups and downs over the years, nearly four decades removed from that conversation with my grandfather, his words remain true. I can’t remember who the President was at the time, but all of those companies are still here.
This may strike some of you as absurd — how can you not be concerned with politics in America? Put simply, I believe that these things tend to work themselves out over time. April’s market gains have shown that, at the end of the day, politics does not drive the bus; corporate America does.
I say this not to make light of the world we live in, but rather to point out that we’re all being led down different rabbit holes based on how we ingest our media. Remember those Choose Your Own Adventure books? We’re all reading the same book, but we’re navigating it in different ways and coming to different conclusions.
We have so much access to everything these days. Some people might think that’s making us smarter, but I actually think that it’s making us worse at handling news, good and bad. And that is evidenced by the gyrations of the stock market. Market moves that used to take months to formulate now take hours, even minutes, as we pass judgment on the news faster than the time it takes to read an earnings release.
Amid this age of media frenzy and over-information, there lies an opportunity for critical thinking and thoughtful reactions. As I march toward three decades in this business, I’m thankful for client families who question us, but also trust us to make the best decisions for their families, for their finances, and for their future generations.
As I write this, we’re going into the heart of the first-quarter earnings season for the largest companies in our stock market. That’s when we’re able to hear from the majority of the largest companies in our stock market and see how corporate America is doing and what they are projecting for the next quarter and the remainder of the year.
I’m prepared to hear that, while corporate America is doing great, the consumer is squeezed. We’re all paying a higher price at the pump, and we’re all experiencing consumer inflation that’s being passed on to us because of oil prices. How long can we shoulder those costs? When will the Iran conflict end? Nobody knows.
By the next time you hear from me, there will likely be something else to worry about in the world. But remember, your relationship with us means that we worry about those things so that you don’t have to. It includes us planning alternative strategies based on how the world continues to change. It includes us taking the temperature of corporate America and economic indicators on a regular basis so that, as we help you manage your current stage of life, we’re able to earn and retain your trust.
Over the last few weeks, you’ve continued to bless us with your referrals. We’ve met with your coworkers, neighbors, children, and grandchildren. We’ve worked with deacons, widows, and new parents. We’ve been able to do that because of you, our amazing client families.
Regardless of whether you trust us completely or you’re just starting out, we’re grateful you’re taking that journey with us. Please don’t keep us a secret. Use our easy referral page and let us help those in your life take the next step in their financial journeys.
This material is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. While historical data provides insight into long-term trends, past performance does not guarantee future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
Article by David Smyth, Senior Partner and Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.