Many years ago an older fellow, a family friend and also an upper level officer in the company I was working for took me aside and the first thing he said to me was “David, a word to the wise is sufficient.” He then proceeded to give me a warning about the work I was doing. Almost forty years later I don’t actually remember what the specific warning concerned but I never I never forgot his opening line. Mr. Colletti meant well when he issued his warning. I knew that he had my best interest at heart. Over the years, I found the occasion to gently warn others in the same way. A word to the wise should be sufficient, even when you may not want to hear it.
Take for instance, the state of our economy here on the Emerald Coast. The country as a whole has experienced an incredible downturn with many millions of people out of work. And while the county as a whole goes deeper and deeper in debt, the State of Florida has rebounded quite well. Unemployment here is half the national average.
Another example quite relevant to the economy of Northwest Florida is the local Real Estate market. Business consultant Bob Conrad, of Eagle Vision Services in Destin noted that “As a result of people relocating from more restrictive states to our area, the market is up over 17% over last year, which translates into more activity and growth for our local businesses, construction trades, suppliers, etc. And the tourism industry here rebounded nicely in the 4th quarter of 2020 as any local can attest by the level of traffic still on the streets and beaches.
We are truly blessed to live here and to enjoy the beaches, sunshine (most of the time) and the relative stability of our economy. Yes, we weathered this pandemic better than most parts of the county.
But, a word to the wise should be sufficient.
My question for those much wiser in such matters is “are we living in a bubble that is sooner or later going to burst.” For some, answering this question instills a measure of fear. Perhaps the thought of losing a sale or a commission is enough to “perish the thought.” Yet the question remains.
The U.S. debt has risen from 23 Trillion to 28 Trillion in just the last year and there seems to be no end in sight. Does anyone really believe we as a country can pay that back or even the interest? Is a debt crisis in our future? And if so, what does this mean for the average person?
In the major financial crisis’ we’ve faced, the stock market was at an all-time high. People were seemingly “living the good life.” 1929, 1987, 2008, all come to mind. In each case, days before the crash, people had a feeling of financial security. And then they didn’t. Ask a realtor what it was like in 2006 and 2007? The “market” was hot! Right up until it wasn’t.
And now, as we celebrate the new year, the stock market is again reaching an all time high. Many again have a sense of security.
I do not know what the future brings. Perhaps our leaders will defy history and discover the secret of printing money in lieu of creating wealth. But I doubt it. And so for me, “A word to the wise is sufficient.”
Someone much wiser than I once said, “the secret to investing is wealth preservation, not wealth accumulation.” For me, that was a “word” I haven’t forgotten. I believe there is wisdom there that just might see us through difficult times.
Author: SWal Life
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