Dear Towerpoint,


Is there anywhere to hide?


The horrific Camp Fire continues to burn in Northern California, and early-season snow and ice storms are now pummeling the northeastern U.S. On top of that, as of this morning, it was another "code red" day for Sacramento, as the air quality index (AQI) earlier this morning here in California's City of Trees was a hazardous and brutal 382:




In addition to the extreme weather conditions throughout our country, the financial markets have also apparently provided reason for many of us to stay inside. Investors seem to be hungrier than usual for protection, as uncertainty has mounted surrounding the U.S. economy and financial markets. The prospect of a slowdown or recession has seemingly become more acute, and has also interrupted the idea that the eight year expansion we have enjoyed can or will continue.


While these arguments are provocative, at Towerpoint Wealth we continue to believe that no investor should tie herself to any one specific outcome. We are very confident that investors will do best when they hedge through intelligent diversification, owning various kinds of risk and safe assets. Assuming you have an objective plan and strategy, you should be confident in and trust it, and be disciplined in following it, understanding there are plenty of things (the economy, politics, and the financial markets always come to mind) that are completely out of your control. What we can control is our own behavior in the face of market concerns, and our humility regarding our inability to accurately, and consistently, predict the future.




Investing overconfidence is, quite simply, overestimating your ability to make money when investing. Evidence of the prevalence of this can be seen in the number of people who go out and try to find the next success story: the next Google, Amazon, Microsoft, Apple, etc. Both everyday people and professionals are guilty of believing they are better than everyone else at diving this next success story. For those who have taken any kind of psychology, you know this goes back to the definition of overconfidence, formally known as illusory superiority. The bottom line: Cut out all instinct from your decision making! Investing is not intended to be thrilling, nerve-racking, or anything of the sort on a day-to-day basis. It certainly can be at times, but on those hectic days in the market, it is imperative to keep a cool head.


The media also is good at feeding us seemingly thrilling and nerve-racking news stories as fuel for the inescapable 24/7 information cycle, with the past two weeks being no exception:

Locally, Towerpoint Wealth's Movember fundraising campaign continues. President, Joseph Eschleman, Partner-Wealth Advisor Jonathan LaTurner, and our Director of Research and Analytics, Nathan Billigmeier continue to grow out their mustaches, raising awareness and money for prostate and testicular cancer research. Please consider supporting the TPW "Mo and Towerpoint Bros" team by clicking HERE to make a donation.




The world remains a complicated place, and we encourage you to call (916-405-9140), email (info@towerpointwealth.com), or Tweet (@twrpointwealth) with any concerns, questions, or needs you have. We continue to be here for you, and look forward to connecting with, helping, and being a direct and fully independent expert financial resource for each of you.


- Joseph, Jonathan, and the entire Towerpoint Wealth team

 
 
 
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