By Tom Teckmeyer

Perhaps you have heard of the Dickens novels The Best of Times and the Worst of Times or The Tale of Two Cities. Either of those titles would well describe the stock market activity of 2007.

The year began with the Dow Jones Averages at 12,463. As the year unfolded a strong economy and solid corporate earnings pushed the stock market higher reaching a peak of 14,000 on July 19. Not long after breaking through the 14,000 barrier news reports began to announce that there was trouble brewing in the sub-prime lending market. What a shock. That companies would lend money to those who had a high probability of not paying it back always seemed like a horrible idea to me. Low and behold that house of cards which was inevitably destined to collapse began to do just that. As more and more “Big-Name” sub-prime lending companies as well as individual borrowers flirted with or in fact did declare bankruptcy the stock market began to sell off and reached a low of 12,861 on August 15. From top to bottom that decline was 1,139 points or a little over 8%. As of September 19 we have recovered most all of that loss and are hopefully poised for a year-end rally.

I thought this would be an excellent opportunity to provide a little perspective on this “crisis” and let me state that I do not see it as a crisis. The consequences of bad ideas never should come as a surprise. We all reap what we sow.  In my opinion, a crisis is a crisis because you did not see it coming - that is what makes it a crisis. We knew this would happen and it has.

On August 18, 1998 the Lord blessed my wife Lori and I with wonderful twin boys. As far as the Lord was concerned they were right on time, however in the eyes of the medical community they were about 10 weeks premature. While I was dealing with two boys and a wife who were not doing very well there was a big development taking place in Russia . The Russian economy had collapsed and they had devalued their currency to almost nothing. This economic tidal wave spread to the Asian countries and found its way around the globe to our markets as well. From mid August 1998 to mid September the Dow Jones lost over 1,000 points or just under 12%. I remember thinking when I was at the hospital tending to my wife and the boys that I needed to be at the office. I would run to the office and think I need to be at the hospital. Finally in desperation I gave it all up to the Lord and informed my staff that I was going to the hospital and would come back to work when I could. I knew that God would oversee our business because it was His to begin with. Once I surrendered it all to Him I was at peace with my family, with the markets, and with our business. God has always been faithful. Since that time the Dow has nearly doubled and every year other problems both here and around the world have come and gone and more difficult times will come in the future. All the while Americas finest companies seem to go on about their business, providing goods and services that people want and need.

There are several points I want to leave you with. There always has been and there always will be ups and downs in our financial markets. Volatility comes with being an investor. Those who are well diversified weather financial storms better. A long-term approach or the ability to ride out the ups and downs has proven to be a successful formula time and time again. Finally, remember that God is in control of everything and nothing catches Him by surprise. Ask Him for the wisdom to be a good steward of the resources He has entrusted to you and then surrender it all to Him.      

Teckmeyer Financial Services is a full service investment firm based in Omaha , Nebraska . It is our desire to follow biblical principles in helping people be good stewards of the resources that God has entrusted to them. If we can be of help to you, or pray for you, please call (402) 331-8600 or (800) 905-PLAN or visit our web site at www.TeckmeyerFinancial.com.