Are Money and Happiness “two peas in a pod?”

It’s been said that money can’t buy happiness. Is that true? In this recessionary year, it’s interesting to ponder the effect money has on and in our lives. What role does money play in our happiness?

Most psychologists and sociologists will tell you that our happiness comes largely from social interaction and less from financial fortune. Yet studies indicate that there is a direct correlation between wealth and a degree of mental health.

Are we ultimately only as happy as we want to be? Maybe. Researchers now increasingly feel that people have a genetic “baseline” on the spectrum of happiness, and deviations from this norm are temporary. In other words, how the stock market does doesn’t rattle our basic level of happiness. Even life-altering tragedies or seeming miracles don’t ultimately budge us much from the norm. (Studies of the brain indicate that people with more activity in their left prefrontal cortexes seem to be happier than some others.)

I believe that money is just a resource that allows you to enjoy the other parts of your life. Sure, it is difficult to maintain a cheery attitude when the media has only negative news to report, but you are ultimately in charge of your quality of life and happiness. It’s important not to get lost in the headlines, but allow your head to see brighter tomorrows…starting NOW.

Wishing You Wealth in all its Greatest Forms

Are We Headed for a Depression?

We’re not living in 1931. You’ve probably read articles that compare and contrast the current economy to the 1930s. Well, we haven’t gone that far back. Sure, we’re seeing a lot of short sales and foreclosures. But we’re not seeing every other bank shuttered, soup lines on the corner, or one out of every four Americans looking for work. The economy is down, but not out.

Clearer skies ahead. If you review what happened in the past, powerful bull markets have emerged from low points in equities and consumer confidence. You can point to 2003, after Black Monday in 1987, and 1982. Some of the best long-term investing opportunities have emerged from extended bear markets or flat markets.

Take some time and speak with your financial advisor about your portfolio and make sure that your plan works in concert with your goals.

Wishing You Wealth in all its Greatest Forms,

Alex

Look forward to 2009

It’s time to leave 2008 behind. We’ve heard the sound bites in the news, seen the headlines and read predictions. Fortunately, that’s old news and we should look forward to 2009.

I believe there is reason to be optimistic. We have a new administration and a huge new stimulus/infrastructure plan that may benefit the economy. We have the Federal Reserve and the Treasury working to thaw the recently frozen credit markets. We have economists sensing the beginnings of a recovery later this year.

Stocks up 20% in 30 days. What? Was it some kind of statistical manipulation? On November 20, 2008 the S&P 500 closed at 752.44. It ended 2008 at 903.25. So the broad stock market gained 20% in less than 30 trading days at the end of 2008.

This doesn’t mean that it will continue, but it does mean that the American spirit has not abandoned the market or our way of life. I am hopeful for a recovery, but as in all things…we should expect the worst and hope for the best.

Wishing You Wealth in all its Greatest Forms,

Alex