On August 13, 1979 – BusinessWeek ran infamous cover essay entitled “The Death of Equities.” Please see the attached Client’s Corner and BusinessWeek picture. Here are some key points I want to you all to consider for this month’s newsletter.
-Equities do not die. The world does not end. Optimism is the only realism – both the facts and historical record prove it. Sadly, journalism sells dismal pessimism– quite the opposite.
-The S&P 500 closed on August 13, 1979 at 107.42 (with a dividend of $6). As I write this, it sits at 2,918 (with a dividend of approximately $56). Wow!
-Every doom forecaster ultimately relies on the argument that “this time is different.” It never is – it just looks like it is. The way things are today are usually never how it is in the future. This is where the press goes astray.
So my point, dear readers, is to turn off the news and live rich. Time is precious. Go outside for a walk, plan a vacation, reconnect with some old friends, whatever will make you happy. Publishing doomsday advice may sell subscriptions – but is not sound investment advice. Please remember this the next time we enter a rough patch. Of course, I will be here to hold your hand and hopefully will prevent you from making “THE BIG MISTAKE” of selling out!