Case Study— Perspective Take a longer view

In business, in relationships, in life, take a longer view.  There is too much short term decision making and too much short term thinking.  It is easy to focus on today, it is harder to step back and look longer—but it is worth it.

• From February 19^th to March 23^rd, the stock market as measured by the S&P 500 fell 34%.
• From May 1 2019 to May 1 2020 the stock market is unchanged (0% change).
• From the peak in the dotcom bubble to today, the stock market is up approximately 100%

When we change our perspective, a loss can turn into a gain.  Interest rates are at historic lows, even in the 4% range.  Housing markets are up 120% from 2000 according to the S&P/Case-Shiller 20-City Composite Home price Index.  Today may make us nervous.  When we take a longer view, we may see something very different and quite encouraging.

Invest for the Long-Term

Waiting for the market to correct before buying is not the best investment strategy in real estate. Most investors believe they can time the market, but the truth is, the real estate market, just like the stock market, is very difficult to time.

Waiting too long to invest results in missed opportunities, regret for missing upside, and inability to reach long term financial goals. A consistent investment plan with a long-term view is the right approach to investing in real estate.

In hindsight, buying low and selling high seems to be a strategy that is easy to execute. Consider some of the challenges with traditional buy low – sell high market timing strategy.

1. In a recession, investors have less money to invest, and it is more difficult to raise capital.
2. In a recession, lending standards typically tighten, making it harder to borrow.
3. While the broad market may have corrected, your local market may not have seen a correction.
4. The trough of the correction may still be much higher than price levels just a few years prior.
5. Most investors aren’t disciplined enough to save aggressively in an expansion and invest aggressively in a recession.
6. When asset prices are falling, it is as hard to call the bottom as it is to call the top when asset prices are rising.

Because of these challenges, the best investment strategy is to buy good assets in good locations and invest consistently over time.

Be Positive

In difficult times, it can be more challenging to have a positive outlook.  We may feel discouraged, frustrated, or afraid.  We, or those around us, may be feeling loss due to changed economic circumstances, loss of an important relationship, or loss of a loved one who passed on.

Unfortunately, bad things happen to good people.  It is a challenging part of life.  We may not be able to choose our circumstances, but we can choose our attitude and our outlook.

Relationships are about People, not Transactions

One of the most powerful things we can do to lift ourselves is to do something that will lift someone else.  While doing something kind for someone else, we find our own spirits lifted, our own fears abated, and our perspective changed.

There are many ways to lift others around you.  We partnered with Milgro Nursery to provide 1,500 May flowers to share.  With each flower a card read as follows: