Monday Market Update – October 25

Forefront’s Monday Market Update

Zoom Out

I love writing the Forefront Market Update each week, and I generally try and make it informative, educational, and entertaining without trying to tap into the emotions of anger, outrage, or fear the way our “news” industry is currently structured. What I have realized though, is that as we focus more and more, it gets overwhelming, and we lose perspective. Not just on investing, or our financial plan, but on life all together.


If you had invested $10,000 in Apple, in October 1991, you would have had $2,675 in December of 1997. That would have been a loss of 73.25%, with an average loss per year of 12.20%. Today, the value of that investment would be $4,000,000.

I hate examples like this because the average investor would have sold at a loss, kicked themselves when it went back up, bought back in, doubled their money and sold, and kicked themselves again for selling.

What this shows me is that life is never straight up and to the right. It is a long-term game, but you need to learn to take some punches along the way, or else you will have a tough time getting through it. This doesn’t mean go buy apple or some other stock, it means that if today is really hard for you, zoom out, tomorrow will be better.

Money shouldn’t be the goal

Many advisors sit down with prospective clients and ask a simple question. “How much money do you think you will need in retirement”? Simple, and straight forward, but misses the point of a financial plan, and financial planner altogether. When we focus on the dollar amount, or on money in general, we lose perspective. We stop being able to zoom out.


Money is a tool that should be given purpose, but can never be your defining purpose.

The purpose of money is freedom. The freedom to do what you want, when you want, with whom you want, for however long you want, wherever you want.

I don’t ever ask my clients how much they think they need, but rather I ask them what do they want to spend the money on?

The first few answers are always a beach house, or a Tesla/fancy car, but as the conversation develops, we start to get into what they would really spend the money on. Life experiences start to come to the forefront and you find out about people’s goals to help family with education, start a community garden, or buy an RV and travel the country with their spouse like they were newlyweds again. Every single one of those things gives us perspective on life, and motivation to work towards it.

When you start to feel overwhelmed, whether its about money or life, zoom out. If that doesn’t work, reach out, I love chatting and have a specific category of meeting types just for some human connection. Sometimes we all lose perspective and need some help finding it again.

So What?

So how does this impact all of you?

  • Life gets hard sometimes, and we lose perspective. It happens with our financial plans as well. Don’t focus on the dollar amount, focus on the freedom.

Stock market calendar this week:

None scheduled
9:00 AM S&P Case-Shiller home price index (year-over-year)
10:00 AM Consumer confidence index
10:00 AM New home sales (SAAR)
8:30 AM Durable goods orders
8:30 AM Core capital goods orders
8:30 AM Advance report on trade in goods
8:30 AM Initial jobless claims (regular state program)
8:30 AM Continuing jobless claims (regular state program)
8:30 AM Gross domestic product (real, SAAR)
10:00 AM Pending home sales index
8:30 AM Nominal personal income
8:30 AM Real disposable income
8:30 AM Nominal consumer spending
8:30 AM Real consumer spending
8:30 AM Core inflation
8:30 AM Employment cost index
9:45 AM Chicago PMI
10:00 AM UMich consumer sentiment index (final)

Most anticipated earnings for this week:

The McNamara Fallacy makes us all focus on what is easily measurable and quantifiable. One of the things we fail to ask our advisors, attorneys and accountants is “What is your decision making process.” We address exactly what our decision making process at Forefront Wealth Planning is in the latest episode of Understanding the Power of Money.
Listen to episode 15 of Understanding the Power of Money.