Think perspective, not chatter

As an addition to my newsletter "Cents & Sensibility" which comes out periodically with holistic topics on life planning rather than focusing on financial matters alone, this marks the beginning of my financial blog which will address various personal financial planning issues in a less formal and more interactive fashion. I hope that you will share your thoughts and help make the whole of the Trinity Financial Planning community greater than the sum of its parts.

I've been fielding calls from various journalists over the past few months asking for commentary about 'what to do now' as the stock market continues its wild ride. It can be difficult to come up with new ways to tell the overriding truth: that people with a thoughtful, prudent plan will achieve success by sticking to the plan and not letting temporary declines - no matter how sudden, severe, and scary - overshadow the permanent advances that are inherent in capital markets.

One of the ways that I analyze current events is not by reading mainstream daily or monthly commentary and trying to decipher the white-noise chatter of 'what happened yesterday' journalism, but by reading books and periodicals looking for perspective to help keep our eyes on the forest, not the trees. An author whose insight I value, Nick Murray, has graciously allowed me to share his article "Of Fires That Burn Out" with our readers. I hope you find his analogy of the current market situation in comparison to the great Yellowstone forest fire helpful.

While the market comeback of this past week certainly helps dampen the raging fire, don't be surprised if we see more flames burning brightly before the year is done. But the rains are indeed coming. Maybe not this week, maybe not this month, maybe not yet this year. But they are coming, just as sure as spring follows winter. Keep those slickers handy.