Vail is massive. The skiable terrain is 5,317 acres, 195 runs, 32 ski lifts, and a vertical rise of 3,450 feet! From Vail Village, the mountain looks immense, and it is, but it only tells part of the story because more than fifty percent of the ski resort is in the back bowls, which you can only see after riding a gondola to mid-Vail and then riding a ski lift to its peak. The back bowls of Vail are stunning, with fabulous ski runs and hiking trails like Seldom, Never, Cow’s Face, Dragon’s Teeth, Red Zinger, Chicken Yard, and the Ptarmigan Loop. It’s paradise.
First-time visitors are awed by the front side of Vail, but if they’re willing to explore the mountain, they will realize there is more to it than meets the eye – much more.
Investors spend too much time focusing on the here and now, looking at the recent headlines to try and make long-term investment decisions. If you only focus on current headlines, you’re missing out on long-term investment opportunities because when a story reaches the front page of the Wall Street Journal or the lead story on CNBC, the market has already moved on; it’s yesterday’s news.
During the market correction, financial experts and economic gurus were predicting a stock market crash with runaway inflation. One world-renowned financial author encouraged investors to buy tuna and baked beans because you can’t eat gold, silver, or bitcoin.[1] The founder of Twitter warned of hyperinflation, saying, “It’s happening.”[2] What happened? The S&P 500 jumped 14.51% and inflation fell 65%. If you only focused on what you can see, you missed a double-digit return in the stock market. Sorry Charlie!
Fear sells, and news headlines are scary. A popular money manager predicting a stock market correction generates more publicity than one who says everything is fine and nothing to worry about. A vociferous investor with a megaphone can move markets in the near term, but the long-term fundamentals of stocks win in the end. Since 1926, the S&P 500 has risen three-quarters of the time and generated an average annual return of 10% despite endless predictions for vicious corrections and economic disasters.
Do not let today’s headlines interrupt your long-term financial goals. It’s already old news. Instead, focus on your goals, invest often, and enjoy life.
My family and I hiked Vail’s legendary back bowls last week, which was incredible. The views were endless, and the wildflowers were spectacular. If we only stayed in Vail Village, we would have missed the most significant part of Vail. Investing, like hiking, is best when you take the road less traveled and don’t follow the crowd.
There’s a big, wonderful world out there for you. It belongs to you. It’s exciting and stimulating and rewarding. Don’t cheat yourselves out of this promise. ~ Nancy Reagan
July 24, 2023
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on your asset level.
Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. Prices and yields are for today only and are subject to change without notice.
[1] https://markets.businessinsider.com/news/stocks/robert-kiyosaki-rich-poor-dad-tuna-gold-silver-bitcoin-inflation-2022-6 June 13, 2022
[2] https://www.cnbc.com/2021/10/23/twitter-and-square-ceo-jack-dorsey-says-hyperinflation-will-happen-soon-in-the-us-and-the-world.html, Jeff Cox, October 22, 2021