“History provides a crucial insight regarding market crises: they are inevitable, painful and ultimately surmountable.”Shelby Davis
As a financial planner with 25 years of experience, I understand that investing can be daunting, especially in uncertain times. With recent news of bank financial distress, it’s natural for many clients to feel anxious about the safety of their investments. However, I’m here to assure you that the US economy, markets, and financial system are resilient, and there’s no need to panic.
Firstly, let’s talk about the US economy. The United States is BY FAR the largest economy in the world, with a GDP of over $25 trillion. While it’s true that the economy experiences ups and downs, it has always bounced back from crises. Even during the Great Recession of 2008-2009, the US economy eventually recovered and has continued to grow in the years since.
Link to visual of largest economies in the world
Next, let’s consider the stock market. Yes, the stock market can be volatile, but history has shown that it’s a great long-term investment. Since 1926, the US stock market has returned an average of around 10% annually. While there have been periods of decline, such as the 1929-1933 Great Depression market, 2000-2002 dot-com crash and the 2008 financial crisis, the market has always rebounded and continued to grow over the long term.
Finally, let’s talk about the US financial system. The US financial system is one of the most regulated in the world, with measures in place to prevent bank failures and protect consumers. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor per account at insured banks. This means that if a bank were to fail, your money would be safe up to the insured amount.
So, what can you do to ease your anxiety and protect your investments? Working with an experienced financial advisor can be a great help. An advisor can provide you with perspective and guide you through difficult times. They can help you understand the risks and benefits of different investment options and create a plan that suits your unique financial situation and goals.
In conclusion, while it’s natural to feel anxious about investing, it’s important to remember that the US economy, markets, and financial system are resilient. By working with an experienced financial advisor, you can be confident in your investment decisions and achieve your financial goals. If you do not have an experienced advisor feel free to give us a call 864-293-7452 and ask Jill to schedule an no obligation meeting to discuss your concerns.
Dave Conley, CFP