Last week we experienced another “first” as the Dow Jones Industrial Average plummeted 1,000 points in what seemed like a blink of an eye. Surely all of us have already computed how much our 401(k) dropped.
The press has generated great financial news playing the blame game and today it seems to be a toss up between a typo mistake and Greece. More attention is now being placed on the Eurozone and the financial press has plenty to write about. By the time this blog hits the wire who knows what will have taken place.
For some reason clients feel the pain of a balance due return far more than the joy of a refund. And the stock market seems to grab more press on its falling than its recovery. Over the last 14 months the DJIA has gained approximately 70% and the Russell 2000 has gained over 100%. Could this 1,000 point drop simply be a “correction” looking for a scapegoat (Greece)? Not long ago the Euro was king compared to the USD. Today the USD is “riding high.” Go figure! I wonder how many investors have panicked, sold low and chased yesterday’s winners.
Years ago I heard someone say that the stock market is little more than “legalized gambling.” But I assure you that the approach to investing in the business world is far more. Ask SCACPA’s Investment Committee. Along with providing professional management, this committee has placed many hours into wise selections and diversification of its portfolio. While our Educational Fund is not exempt from risk, it has been given close attention throughout its existence. And soon, it will be distributing scholarships for the 2010-11 school year.
In 2008 and 2009 we were able to continue with the scholarship program due to the diligent decisions our committees have made in the past. It may surprise SCACPA members to hear that the total scholarships have stayed at or near the same level as in years prior to this recent economic down turn. To my surprise, however, we had fewer applicants.
May I suggest that each member consider promoting our Educational Fund by not only contributing, but also by marketing? If you know of a deserving a accounting major that is a junior, senior or graduate student attending a South Carolina college or university, would you encourage them to apply for our scholarships this year?
Not only is our investment portfolio well diversified, but also are our recipients. We would like to have the pleasure once more of assisting students at schools from the coast to the foothills and all points between…a well diversified group of students in the Palmetto State.
Blogger: Charles ‘Eddie’ Brown, CPA