“From where do I get my strength? I lift my eyes to the mountains and my strength comes from the Lord”. Hi, this is Scott Carter with PM Capital, and I’m in Salt Lake City, and I just was looking at the mountains, the mountain range surrounding Salt Lake City, and how majestic it is, and how beautiful it is, and I think about all the wonderful things that we get in life, and all the blessings that I wanted to come to you today because you know, you’re investing and there’s a lot going on in the market, no question about it, and I want to make sure that we understand that you can be optimistic, but you can be a realist, and I was recently talking to investors that have never experienced a bear market. They’ve been investing for 10 years, and they’ve never experienced a market that’s going down.
And it is unprecedented that we have 10 years of not just a recession, but we’ve had 10 years of almost straight up. In fact, for the last year and a half, we haven’t even had a 5% correction. Now, there are a lot of reasons for that, but that doesn’t mean that we should ever lull ourself to sleep thinking that we’ll never have a recession again, or that we shouldn’t prepare for the fact that inevitably markets have cycles, they go up and down, and we’ve had a lot of recessions since the great depression.
I’ve been through a lot of them myself. I went through the 1987 recession, the 1991 light recession, I went through the 2001 dot com bubble, and of course most of us experienced the 2007, 2008 you know, great recession. But yet there’s a group of investors that have been investing for 10 years, and never experienced a recession.
So I’m not just talking to them, but I’m talking to all of us to say, don’t fall asleep, when there’s complacency in the market, we should be fearful. And when the market is fearful, that’s when we should be greedy. So when you look at your portfolio, and you’ve had 10 years of great investing, don’t think it’s going to go on forever. Make sure you’re rebalancing your portfolio, make sure that you’ve got the right assets in your portfolio to hedge against those risks that are out there.
And what are the risks? The risks are loss of buying power, the risks are increasing debts, the risks are that we get a hiccup in the market, so look, Joe Kennedy, the father of John F. Kennedy said, you fix the roof when the sun’s shining, you don’t do it when it’s raining. Well the sun’s shining right now, let’s fix the roof, let’s make sure our portfolio is balanced, let’s make sure we’ve got the right assets. Tangible assets, that’s the business I’m in, make sure that you’ve got some tangible assets, like gold and silver, it’s a great hedge against what could lie ahead.
I hope this helps, have a great day, happy investing, and look at the majesty of the mountains behind me.