Whenever Times are Worrisome, Go Back to the Basics

We can honestly say we never expected to see anything like we did on Jan. 6, 2021 in this country. Watching the appalling display at the Capitol leads to fear and anger. It can even lead to a feeling of helplessness.

However, let’s review what our generation has endured: the Iran Hostage crisis—lasted more than a year and was a dark time for this country. Black Monday—one of the largest one-day market declines ever. Y2K—all of the computers were going to stop working. The Dot Com bubble—had very similar stock valuations as today.  9/11—who will ever forget that? Nothing worse has happened to this country except for possibly Pearl Harbor, the war in the Middle East, and the financial crisis of 2008/2009. All of these events have left a profound mark on us and our economy.

Most recently, we have been dealing with COVID-19 and a slow rollout of the vaccine, although developed at warped speed. Being locked away from our loved ones while watching a third of the economy literally come to a halt has put our nerves on edge. Coupling that with civil unrest and all riots that have ensued, only intensifies the fear. When people are fearful, they tend to want to try to take back control. Often, the first place they look is to their investments and tend to make knee-jerk reactions, whether good or not for their well-being.

Dr. Gene taught us all that sometimes an active portfolio decision is to do NOTHING!  I strongly urge everyone to think about that sentence. Yes, the Democrats swept both Senate seats in Georgia, and now the Democrats will control all three houses of government. Is not the first time in our history this has happened. In fact, history has shown that this situation can be positive for the markets. The Republicans had control of all three houses in President Trump’s first year of office. The world did not end, and it will not this time either.

So, what do we do now? Whenever times are worrisome, go back to the basics.  First, do you have a financial plan?  A plan is one of Henssler Financials’ bedrock principles.  We help clients create a plan that is designed to weather the storms. Often, there is no need to change course now. The reason we have the Ten Year Rule is to protect your spending for scary times like these. Consider investing in things people need. At the end of the day, regardless of what side of the aisle you are on, you want to take care of your family. That means a roof over their heads, food, essentials, and funds for education.

We had a number of calls yesterday asking, “How can the market be up with what’s happening in DC?” The market is likely expecting a bigger stimulus package to come out of Congress quickly. On one hand, that could help our economy and fellow citizens who are hurting. Targeted help is needed. On the other hand, someone must pay for all this stimulus. Ultimately, that will mean higher taxes. Long-term higher taxes are not positive for an economy. It takes money out of the consumer’s hands that could have been spent and gives it to the government, which is not a political statement, but a fact. There are pros and cons to everything.

We still believe this is the best country in the world. Yes, we still have issues, but what family does not?  We truly hope cooler heads will start to prevail, and our leaders will find a way to stop the divide. There is enough blame to go around for both sides.

As financial advisers, we are ever vigilant with your wealth. We take that responsibility very seriously. From our perspective, money is green. Not red or blue. You should adjust your portfolio when necessary, but right now is not the time.

If you have questions on how we can help you develop a financial plan with the flexibility to weather the storms, the experts at Henssler Financial will be glad to help:


Disclosures: The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.

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