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Hot Air Balloons

By Paul Moffat, MBA, AIF®

As I was pulling out of my neighborhood the other day to go to the office, I looked up into the beautiful blue sky and I saw two large hot air balloons floating in the air. I’m sure the passengers were having a few view watching the Las Vegas valley wake up to the new morning. 


I went about my drive to the office. 


When I arrived, I looked back to the location of the hot air balloons and to my surprise there were three hot air balloons in the sky. 


I thought to myself, “How did I miss the third one? Did it rise quickly when I wasn’t looking?” 


Then I realized, from the perspective of my neighborhood the whole view was partially blocked. I couldn’t see behind the first two hot air balloons and my perspective was not complete. 


Once I had changed my location with a new perspective - I could see more. 


That I what is happening right now in the capital markets. Many positive things are being unexpectedly announced by public companies. With good economic news many are asking, “Where did it come from because this is a surprise?” 


Many already had a solid one-way financial looking perspective of the public companies and now are seeing another financial looking perspective with more positive news which increases the stock price of these companies. 


Over the last few years, multiple companies have been strengthening their balance sheets and income statements which provides an overall healthier company. These companies are making good changes and you can’t see the full effect until you get down the road. These changes are leading to financially strong companies which increases their stock price leads to happy days and the ability to achieve greater long term financial goals. 


Don’t think you know everything and there can’t be any more good news.

There are always surprises and different perspective in the unexpected world of long term investing. 


Have a great day.