Molly Related to Markets

The people in this picture are some of the most important people in my life. One is our son (Owen), and one is our dog (Molly). Molly turned 13 on July 4, 2021, and is the oldest member of our family. Owen turned four this year – we have few better friends than Molly.

Molly eats breakfast around 6:30 a.m. As you may imagine, she’s very excited when this time comes. A 13-year-old Lab is not as energetic as she used to be, but food gets her excited every time.

Watching Molly day-to-day is a joy. She quickly goes from sleepy to high-energy in seconds, depending on the situation. It reminds me much of how we, as investors, often change emotions based on the Market:

1. Stay calm
2. Be excited

Stay calm – trust your portfolio is in the best place for you.

Over the past year, many friends have grown accustomed to the attractive investment returns they realized. Market returns have steadily increased over the past year. I equate this to Molly’s long naps, which last most mornings and afternoons. She’s able to relax until it’s time to eat again. Molly is healthy with a happy tummy and content, knowing she’ll have another meal within a few hours.

Just as a pet should trust in its owner for regular meals, we expect the broad stock market to grow over time. There will undoubtedly be calm years where investors see gradual growth in their investments. These periods are when investors should be aware of their financial plans and lean on their advisors from an investment perspective. By no means do I recommend taking a nap as Molly would, but rest assured your financial plan is on track to achieve your goals – near term and long term.

Be excited – there can be excitement in stock markets.

If you’ve ever seen a 13-year-old dog, it’s likely an expert at napping. Then again, that same dog – Molly included – can still jump very high if there’s a cup of food in front of it. What was previously calm has now become excited. A loving pet owner reassures their pet of mealtime. As this relates to the stock market, a financial advisor should also reassure clients that their accounts have been appropriately invested in weathering said volatility.

Rather & Kittrell Advisors utilize a thorough approach to helping ensure client portfolios do not fluctuate too significantly as markets ebb and flow over time. Recently, we discussed the same scenario with a married couple. While their portfolio has grown considerably over the past year, they can still maintain their standard of living if their accounts realize negative returns. Tension in the room immediately eased because the couple knew they could continue traveling to see their grandkids, taking a beach trip here and there, and visiting with local friends, all of which they worked their entire lives to achieve and maintain.

Altogether, while Molly has an easy life, it’s our goal to help clients have easy lives as well. Everyone’s financial goals are different, and we would be honored to discuss how we may help you achieve your financial goals as well. We’re here to help.

Nathan Woods, CFP®, AIF® is an Advisor with Rather & Kittrell. Nathan is available at [email protected].