It Was 33 Years Ago Today

1987 -- October 19th – A Monday, just like today…

Wearing a scratchy discount starter suit, I rode the subway downtown to begin my first day on Wall Street. Just out of college, with a net worth of no more than $100, I was proud in my tight, new leather lace-up shoes but had no briefcase to carry because I didn’t have any clients.  I was excited and very nervous. But after strutting past the crowd of New Yorkers and taking the elevator up to the 48th floor, I sensed a radically different kind of fear as soon as I went through the enormous glass doors. There was a palpable panic in the air. The stock market opened in a free fall that morning, and everyone, I mean everyone, was in a state of shock.

Looking back on that “Black Monday,” I remember two different investor reactions to the shocking drop. Many people sold out during the day, but the other group of investors did not react in fear. They had a plan in place. In anticipation of any sudden decline, they knew not to sell. By the end of the day, the market had fallen by more than 22%. But six months later, the market had recovered most of its losses. Most who had sold during that panic were still holding cash with no clear plan forward. I decided that October day to help my clients be part of the plan-in-advance group rather than the reactive group. That incredible first-day experience showed me first-hand that investing is not just about picking the right stocks or bonds. It's about avoiding mistakes and emotional reactions to events like that day. That distinction has made all the difference in how we guide our clients to enduring wealth so they can spend time and energy doing the things they love.

In my 33 fantastic years in the business, the principles remain the same: Be cautious about emotional reactions to market volatility. Determine what you want your money to do for you. Develop a plan to achieve those goals. Expect turbulence and make course corrections where necessary. Focus on the things you can control, then relax and let the process serve you. Life usually works out for the best.

I am looking forward to serving you in this same spirit for 33 more years,

Fred

p.s. The Dow Jones Industrial Average fell to 2000 on that day. Today it is around 28,000, a 14-fold increase. The cheap suit is long gone, but I still have those lace-up shoes.