In These Uncertain Times, A Long-Term Strategy is Best
These seem to be uncertain times on several fronts. The situation in the Middle East remains unsettled, with the threat of regional war that could expand outside the region. In America, political discourse has devolved into name-calling and threats. As we approach an election in six months, we are experiencing the first-ever criminal trials of a former president and current presidential candidate. Both the major party candidates would be among the oldest U.S. presidents in history. And recent market activity suggests this uncertainty is making the markets skittish.
We have had uncertain times before, of course. And in times like these, often the best investment approach is to choose a reasoned and time-tested approach – and then stick with it. That is the approach we follow at Peachtree Investment Partners.
At Peachtree, we begin by talking with you to help us understand what you need and expect from your investments. How do you define your goals? Are you saving for a house? Children’s education? Retirement? To leave a legacy for your children and grandchildren?
What is your comfort level with risk? There are investments that have a very minimal risk of loss, but they also generally have relatively lower returns. Investments with a potential for high returns also usually carry a higher potential for losses. You want to find a spot that leaves you comfortable with your returns and still able to sleep at night.
That always has been the spot that we target. We focus on the stocks of large American companies that are established in their industries and have a tradition of strong and experienced leadership. We look for companies with a consistently good return on investment and a long history of revenue and earnings growth. We prefer companies that have weathered many cycles of change – economic, political and social – and in so doing have avoided most of the market’s extreme highs and lows.
In addition, we choose stocks that pay dividends. A company needs a strong cash flow in order to pay dividends, which suggests the company has developed an effective business model. In addition, dividends can provide a shield against market volatility because all your return does not come from an increase in the stock price. Finally, choosing to reinvest your dividends can help to grow your portfolio significantly over time.
If history is any guide – and it usually is – these times will become less fraught, at least for a while. But we believe that whatever the times bring, this reasoned, long-term approach can help you build a strong and resilient financial foundation for yourself and the people you love.
We are happy to talk with you at any time about your investments, your concerns and your plans. Just give us a call. Garry can be reached at (404) 226-2728, and Courtney can be reached at (404) 403-9079.
Garry K. Schaefer
Courtney S. Deveau
April 23, 2024
Peachtree Investment Quarterly may offer general financial, insurance, tax and business ideas. However, due to the ever-changing tax laws as well as the complexity of the financial industry, you should seek professional advice before implementing any of the ideas contained in this newsletter. Peachtree Investment Partners, LLC assumes no liability whatsoever in connection with the use of this newsletter.
