January 20, 2020
Thank you for your continued trust in Verdi Wealth Management.
My goal has always been to offer the best advice and service when helping you plan for future or current wealth.
We were all rewarded last year with the performance of the Stock Market. People ask me, “what do you think will happen to the market in 2020? Most of you know that I don’t ever make predictions about short term market moves.
It’s all about earnings growth and dividend growth. If those two are in place on the stocks you own, then the stock will eventually price higher and the lack of those means you won’t have growth.
But in a given year good stocks with good growth of earnings and dividends could still languish if the overall mood of the market is negative. If the market is flat or down and your stock is still growing earnings and dividends; it may soon be very smart to add to those positions.
I also don’t try to pick the direction of stocks based on world events or unusual events like the assassination of a president. Those are scary things but stay put in companies that are growing your wealth and income. Looking back, you can see that your dividends purchased way more shares in a downturn than they had before. I see this as the key to staying confident through news cycles or recessions.
I look forward to the new year and staying on top of the best new ideas for investing. If the above didn’t make sense, give me a call. We can go have coffee and review your accounts and how they will act in upturns and downturns. In this game, we are the casino! People betting against the market are the losing players.
Patience and Faith.
These are also explained in depth in my book. If you don’t have a copy, let me know and we will get you one!
I hope to see most of you in the coming year.
May 2020 be a blessed year for you and your families.