Let’s start with this article I read this morning on msnbc.com…
The article talks about how the market has been experiencing “gains” this week. I have a hard time with that type of language because it isn’t entirely accurate when looking at the big picture. The Wall Street media machine is clever with how they word things and hopeful that folks have short term memories.
To us, a “gain” is something more than what we originally had. In addition, it is something that we get to “keep” and not be subjected to potentially giving back at some point in time (paper gains). If upward movement in the market isn’t getting us above where we once were then I will argue that it IS NOT a gain, but rather a recovery.
When we speak of gains, we prefer “locked in gains”… those are the kind that can never be given back due to market volatility. Take a look at the above picture. In short, it represents a story… and is the story that we tell our clients each day. If you are on the navy blue line, then the above linked article is correct, it is a “gain”. If you are on the dark red line, then it is not a gain but rather a “recovery”.
Regardless of what the market is doing–our clients never have to recover! That is peace of mind and sleep insurance!! We invite you to come on over to the navy blue line–our clients love it, you should learn about it!!