You Started with Digits… Do You Still Own Digits?

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06 Dec 2017

Our company President, Jeff Johnston, and I received a phone call last week during our radio show from Bill in Wisconsin that went something like this, “Hi guys, it’s up 800%… what do you think about BitCoin?” Jeff’s response was his usual reply, “Thanks for listening Bill, it’s not good or bad, it depends on how much of it you own compared to your total portfolio, your concentration limit.”

Jeff immediately started to refer to his “Apocalypse Du Jour list” after the caller hung up.  This list includes bad events that have occurred each year that could have “caused great fear or nervousness, frighten or scare people out of investing for the long-term.” Jeff and I were thinking the same thing about BitCoin; will the collapse of BitCoin be on our Apocalypse Du Jour list some day? Here’s a look at Jeff’s list so far:

– Global Warming
– Black Monday
– Asian Flu
– SARS
– Mad Cow Disease
– Y2K
– 2012 (Mayans Predict ‘The End’)
– Fiscal Cliff
– Debt Downgrade
– Enron, Worldcom, Lehman Brothers

– Bailouts
– Ebola
– ISIS
– Greece
– China
– Zika
– Presidential Election
– Oil Correction
– Brexit
– Rising Interest Rates

My favorite on the list: Black Monday, October 19, 1987. When the blue-chip stocks that made up the Dow Jones lost 22.62% of their value, easily topping the 12.82% decline of October 28, 1929, during the great depression.  The collapse wiped out more than $500 billion worth of market wealth at the time; the Dow Jones lost 508 points and finished at 1,738.74.

Sam Walton, believed to be the nation’s richest man at the time, was asked if he was upset about his personal holdings dropping more than a $1billion in value in a single day, replied: “It was paper when we started out, and it’s paper afterword.”  Of course, Sam never sold his stock, and America went back to work.  Thirty years after Black Monday, the Dow Jones hit an all-time high of 23,000, for the first time ever.  If there ever is a collapse in the BitCoin, do you still own digits?

Good Luck!
Jonas

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Jonas Everett

Jonas C. Everett is originally from Cedar Rapids, Iowa, where he still resides with his wife, JoDee, and daughters, Ella and Addison. He graduated from the University of Northern Iowa in 1993 where he majored in Communications. He has 22 years of experience in the investment industry and estate planning business. He is currently a Partner of “Premier Investments of Iowa, Inc.” Jonas is also the founder and creator of “Lighted Tunnel Succession Systems,” which can be found on www.lightedtunnel.com. The last 10 years, he has been in charge of mergers and acquisitions for Premier Investments of Iowa, Inc. In 2011, Jonas founded the National Association of Retired Insurance Agents, to help retiring insurance agents implement their own business succession plans.

His main focus is Estate Planning and Investments for Senior Citizens and Pre-Retirees, and he also specializes in Retirement Income. He is a speaker for the Cedar Rapids School Buddies Program for 5th and 6th Graders. In his free time he enjoys golf, reading, and spending time with family and friends.