June 4, 2025

The Uncertainty Index and a Poem

Phil Albitz, CFP®
Phil blog photo

Hi Everybody,

I hope all is well, and that you’re ready for a great summer. In this brief video, I’ll be commenting on one of the supposed drivers of volatility in the financial markets, and then I’ll share a poem with you.

The supposed driver of market volatility is uncertainty. You might be surprised to learn that an uncertainty index was developed back in 1997. And perhaps not surprisingly, this index is currently at its highest level since its inception. So, what does that tell you about the markets? Personally, it doesn’t tell me much. Of course, we don’t know what’s happening with tariffs, the tax bill, or the deficit, or with anything else for that matter. But here’s what we do know: There is never a time when there is certainty. Just because the weatherman forecasts sun tomorrow doesn’t mean it can’t rain.

Consider the recent basketball playoffs, where the Knicks were down by 20 points multiple times, seemingly certain to lose, yet they still won. Sports are always uncertain, and so is politics. In fact, uncertainty is a constant in life itself. When it comes to the financial markets, there are many valid reasons to sell your stocks or bonds, like needing cash for a vacation, college expenses, a home remodel, or lending money to a family member. However, uncertainty should never be a reason to sell your stocks. We all know there’s never absolute certainty in anything, yet we manage to get by, and that won’t change. Now you know my thoughts on uncertainty.

On a different note, we all know someone who seems to be the smartest person in the room. I’ve even heard it said that if you’re the smartest person in the room, you’re in the wrong room. With that in mind, I’m now going to read you a poem called “Smart” by Shel Silverstein, which is about a child who wants his Dad to think he’s the smartest person in the room when it comes to finance.

Smart

by Shel Silverstein

My dad gave me one dollar bill

‘Cause I’m his smartest son,

And I swapped it for two shiny quarters

‘Cause two is more than one!

And then I took the quarters

And traded them to Lou For three dimes— I guess he didn’t know

That three is more than two!

Just then, along came old blind Bates,

And just ’cause he can’t see,

He gave me four nickels for my three dimes,

And four is more than three!

And I took the nickels to Hiram Coombs Down at the seed-feed store,

And the fool gave me five pennies for them,

And five is more than four!

And I went and showed my dad,

And he got red in the cheeks

And closed his eyes and shook his head—

Too proud of me to speak!

I can’t say for certain, but I hope that made you smile. Until next time, I’m Phil Albitz, and thanks for watching.

All information is believed to be from reliable sources. However, we make no representation as to its completeness or accuracy. This information is not intended as tax or legal advice. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not consider the effects of inflation and the fees and expenses associated with investing. The return and principal value of stocks fluctuate with changes in market conditions. When sold, shares may be worth more or less than their original cost. The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value.

Phil Albitz

CFP®

Phil Albitz is a veteran Financial Advisor and Chief Investment Portfolio Manager for our Greater Value Accounts. Phil is also a CERTIFIED FINANCIAL PLANNER® and has been registered in the securities business since 1982. His strength is in stock market analysis, portfolio design, risk management and retirement income strategies. Phil works closely with our clients to help them meet their goals and objectives in a personal and professional manner. He is an avid sports fan and spent many years coaching his two sons, Clete and Vance, in basketball and baseball. In his free time, he enjoys playing with and watching his six grandchildren as they grow and mature. Phil was born and raised in Southern California and resides in Torrance with his wife, Velma. In 2024, they celebrated their 48th year of marriage.

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