This third and final commentary was
originally posted December 6, 2012.
Though written almost 3 years ago, the
term “Fiscal Cliff” is fairly fresh in my memory. At that time, I was very
aware of how closely everyone followed the news, how it dominated most any conversation,
and how most people expressed a concern for how the “cliff” would impact them.
I was amazed at how the conversations were
so personal, and the actions were not.
When I shared the thoughts below, I
stressed the importance of gaining a better understanding of the key issues at
hand, the relationship between finances and freedom, and free enterprise and entrepreneurialism. Three years later, our economy has shifted even further. These topics are just as important now, and they hit most everyone even closer to
home. Financial literacy is as critical as ever.
What
I most enjoy about returning to this post is the perspective and the call to
action that the Centurion Advisory group article provided. As I said below, beyond the
education and the guidance to take care of things “at home”, I hope this
inspires you to also take the opportunity to reach beyond the noise, and reach
beyond yourself, to make a difference in the lives of others.
----
One cannot develop
others in an area he isn’t developing himself. To that end, I have always
included a variety of publications and newsletters in my reading cycle that
strengthen my understanding of the most significant matters currently driving
the course of our nation.
Not the latest trends,
and not the messages from mainstream media, but rather the core issues in play,
the questions they raise, and the foundational principles being applied (or
not) in their solutions. I also enjoy learning from the perspectives of other
leaders concerned about the same.
I have always had a keen
interest in the history of our nation, and enjoy learning about economic and
financial principles. The more I study the two, the more I learn how finances
drive freedoms, from our “personal economies” to our national financial
systems. This past election, the economy was a core issue, yet our viewpoints
on the economic issues showed amazing diversity.
Many viewed the issues
from a very personal perspective. Others put aside a concern for personal gain
in favor of national strength. Some had short term views, and others looked far
into the future. Almost suddenly thereafter, the focus became a pending “cliff”
only a couple of months away.
I encourage you to…
- better
understand the issues at hand, learn all you can about them and view them
through a lens of sound principles beyond the sound-bites being discussed
- understand
what drives our economy, what drives our freedom as a nation and learn how
they are interrelated
- gain
a better understanding of free enterprise and entrepreneurialism, and how
integral they are to where our country is headed
But also rise above it.
Regardless of the short-term actions taken by the national leaders in the
coming weeks, step back and see how little these decisions impact you. Or,
perhaps, don’t let them.
In the article below,
the Centurion Advisory group adds to their end-of-year outlook a great
perspective on inward concern versus outward focus, and the importance of
taking actions in both. Beyond the education it provides, and the guidance to
take care of things “at home”, I hope this inspires you to also take the
opportunity to reach beyond the noise, and reach beyond yourself, to make a
difference in the lives of others.
FROM: Centurion Advisory
Group, Newsletter, 12/4/2012
Domestic equity markets
have followed a very traditional pattern this year. They were up through April,
accomplished almost nothing through the end of October, and were up a bit in a
volatile November. This pattern generally yields a solid December, but I'm no
fortune teller, so we will know for certain the evening of December 31st.
Most investors have made
money this year, whether they've invested in stocks or bonds, and regardless of
where in the world they have invested. Again, this confirms a very traditional
pattern, described by some as the "Wall of Worry". When many are
fearful of investing, or concerned that the market will take a plunge, the
market can do well. An added complication is that for many of us, the fall of
2008 and spring of 2009 don't seem that far away, and none of us are excited
about a repeat. This "Wall of Worry" isn't a perfect pattern, though
the general correlation makes for a fascinating study in human behavior.
At the moment, there are
plenty of macro issues to worry about, for those who choose to burn through
energy worrying about things. Our fearless leaders in DC have gone almost four
years without a budget, and they are still wrangling over tax details to avoid
what has been called a "fiscal cliff". The U.S., and many other
countries, is absolutely covered up with debt, and there is no politician
living that is willing to stand in, and help resolve these long term issues.
Some wonder what happens to the viability of the U.S. if the U.S. dollar is no
longer the world's reserve currency. The Middle East continues to be a milieu
of tribal warfare.
If it helps any, let me
remind us that there have always been wars, and rumors of wars. Over the last
100 years, there have been two world wars, and almost too many other conflicts
to reference. There have been currency implosions, destruction of people
groups, tribes, and rainforests, terrorist attacks on the U.S and many other
countries, tsunamis, hurricanes, tornadoes, and hosts of other natural
disasters, and on, and on.
In spite of this, and
sometimes because of it, "here in Topeka", the screen door needs to
be fixed, diapers need to be changed, and meals need to be prepared. Life for
most will go on, and these "most" will continue to pay their light
bill (Warren Buffett figured this out a long time ago), buy groceries for the
family, tennis shoes for the kids, and gas for the car. The well run companies
that offer these products and services will continue to be profitable, hire new
employees, and expand. As these companies see similar opportunities around the
globe, they will expand into enterprises with a global footprint.
So, what does all this
mean, and how do you take action at the moment? Let me suggest a dual focus,
one inward looking, and one outward looking.
First, know that your
personal economy isn't directly related to the overall economy. Most of you
reading this have developed some level of skill or expertise that allows you
enough income to pay your bills. Provided you have food, clothes, and shelter,
the rest of your personal economy is a function of one thing - discipline. Our
highest and best recommendation is to spend lightly, save diligently, invest
wisely and with counsel, and stay far away from debt. These habits and
disciplines, exercised consistently across decades, will yield magnificent
results. There is no better place to be financially than debt free, profitable,
and cash flow positive, and on this issue, I speak from experience.
Now, what about outward
looking? About 45% of voters were pleased with the recent elections, and 45%
were displeased, with 10%, and growing, fairly agnostic and cynical about the
whole thing. And yet, political outcomes, regardless of where we each fall on
the spectrum, are white noise compared to other, larger, issues.
For decades, our country
has been the city on a hill, the golden land, which offered opportunity to all.
From around the world, immigrants came, seeking a life which was better than
the one they left behind. For more than two hundred years, we have stories of
those from meager beginnings, from all countries around the globe, finding a
better life for themselves and their families in the U.S.
A study of these stories
reveals a commitment to work, to give, to share, and to help others. A few of
the names are Andrew Carnegie, who built many of the libraries in this country,
Nathan Hale, who was saddened that he had only one life to give, and Patrick
Henry, whose oratory helped inspire a young nation to freedom.
Others include Abe
Lincoln, who was seen as inept, yet governed during one of our country's most
difficult moments, George Washington Carver, who applied his God given talents
in spite of what many would call built in disadvantages, Teddy Roosevelt, who
challenged us with his "man in the arena" speech, Ben Carson, raised
by a single mother, yet one of our premier physicians, Shahid Khan, new owner
of the Jacksonville Jaguars, who came here with little, and Churchill (I know
he's a Brit), who through force of will saw a weak England to victory against
the Nazi war machine.
Here's the question.
What will we choose? Will we choose only to feather our own nest, to hide
behind security gates and locked doors, to move only within circles of folks
like us? Or, will we choose to reach out? Can we, by example, show the world,
even if that world is simply our neighborhood, how to live? Will we
intentionally look beyond the belief system, the orientation, the skin color,
the accent, the appearance, to hear the story, to offer a word of
encouragement, to find a way to help, to be a friend?
Will we bind up the
brokenhearted, loose the chains of injustice, help set the captives free? Will
we share our food with the hungry, offer shelter to the homeless, and clothes
for the naked? Will we choose to restore those broken relationships of our own
flesh and blood? Will we choose to offer words of kindness and encouragement,
instead of criticism, complaint, and condemnation?
If we will, then we will
live in a supernatural light, and will find healing instead of brokenness. We
will be given physical strength, and our lives will be as a well-watered
garden. We will be called a repairer of broken walls, and a restorer of streets
with dwellings.
