Everything You Know is Wrong

Some of my aging ex-hippie clients may remember the 60s alternative comedy group, the Firesign Theater. One of their albums was entitled, "Everything You Know is Wrong." Recently, I've wondered if everything I know is wrong.

I don't mean to frighten you, but the last month has been a time to examine the fundamental assumptions that I've taken for granted during my 30 years of offering financial advice. Some of these are: •money market funds will never fall below $1 per share;

•the safest place to have your money is in US government securities;

•the FDIC will always be solvent; and

•diversification is the ultimate financial strategy for long-term stability.

Though the stock market had a good day yesterday (up 11%) I don't think happy days are here again, yet. In all likelihood, things will return to normal some day, but if it doesn't, it won't matter where your money is.

Panic is rarely a productive response to a crisis. The future is unknowable. It's better to learn about the situation, evaluate it and decide what to do or not do. As always, if you need to talk to me about your situation, please call.