February 20, 2019 - Published by IAG Wealth Partners

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Grind Blog

On Monday IAG Wealth Partners held its annual State of the Company meeting. It is an opportunity for our team to gather off-site to review accomplishments, focus on better ways to serve our clients, and do some team building.

Our team-building exercise this year was at the Game Show Battle Rooms where we worked together as teams and participated in vaguely familiar game shows including Friendly Feud.

In Friendly Feud participants guess the top answers to survey questions. There are typically 4-6 top answers for your team to guess. If your team gets all the answers you win. If your team doesn’t get all the answers after three wrong guesses the opposing team gets one guess to try to win the game.

In one of the more disappointing moments of my 20 years at IAG, I let my team down when they needed me most. The question was something along the lines of “Name something that you grind.” Three of the four answers had already been guessed correctly and our team had only one chance left to guess that final answer. I knew the right answer, but I also knew that it would not be one of the top answers given in a survey of normal people.

The right answer, of course, is the stock market. But I should have said hamburger. I ended up halfway in between with avocado.

The stock market is a grind. Since January 1, 1950, the S&P 500 has provided traders with a positive daily return 9,070 times, a negative daily return 7,957 times, and a flat return 115 times.

Converting those figures to a percentage basis the S&P has been positive on 53% of trading days, negative on 46% of trading days, and flat on 1% of trading days. That is the definition of a grind.

So far in 2019, the S&P 500 has been anything but a grind – 72% of days have been positive and 28% have been negative. The longest “losing streak” has been two days.

At some point it is likely that 2019 will return to a grind, fear will replace greed, and financial headlines will turn more negative again. And hopefully hamburger will replace avocado.

The key to the long-term financial plans we create for our clients is that they do not rely on short bouts of unusual gains, but the long-term financial and investment discipline to grind toward your goals regardless of short-term sprints or setbacks.

Quote of the week:  Cal Ripken, Jr.: “When you’re in the day-to-day grind, it just seems like it’s another step along the way. But I find joy in the actual process, the journey, the work.”

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.

The S&P 500 is an unmanaged index of 500 U.S. large cap stocks. One cannot invest directly in an index.

Past performance is no guarantee of future performance. In fact, the opposite can be true. The information contained in this report does not purport to be a complete description of the securities, markets, or development referred to in this material. Investing involves risk including loss of principal.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein.

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