Bumpy Roads

How good is your car’s suspension?

Photo: Kenneth Allen. Source: Geograph. CC-BY-2.0

Driving along the back roads in New England can be an adventure. There are twists and turns and frost heaves that rise up in the late winter / early spring and then degenerate into potholes in the summer and fall. These can make our highways and byways hazardous to a vehicle’s undercarriage. How fast we travel depends on how firm a grip we have on the wheel and whether we have dental insurance to deal with loose fillings afterwards.

By contrast, I’m always amazed when I travel to other parts of the country: how straight and level and smooth even the smaller roads tend to be. There’s a reason why the speed limits out west tend to be higher.

Driving can a lot like investing. Some roads are more difficult to negotiate. They’re bumpy, they have steep drop-offs, they may not have guard rails. When we find ourselves travelling along one of these, we need to slow down and be more cautious. Other routes are well-travelled superhighways. They’re designed for speed and efficiency. Their biggest road hazard is boredom.

Photo: CGP Grey. Source: Wikimedia

How fast we drive is like how much risk we take when we’re investing. It depends on what tools we have, what the environment is like, how much time we have get to our destination, and our own constitution. Some folks like to drive fast, just for the exhilaration.

But if the road turns out to be rougher than expected, watch out!

Douglas R. Tengdin, CFA

Charter Trust Company

“The Best Trust Company in New England”

By |2018-10-05T06:51:09+00:00October 5th, 2018|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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