Detective Harry Callahan
My last blog included songs of the sixties. Let’s move forward a decade and think about a movie and its iconic character, Detective Harry Callahan. This year marks the 50th anniversary of “Magnum Force”, a movie starring Clint Eastwood, one of Hollywood’s most prolific actors, who more recently starred in, produced, and directed other films with important social commentary.
“Magnum Force” is one of several “Dirty Harry” movies, and it is a story about San Francisco in the early 1970’s. It is a story about a time of great social change. Independent and a bit grizzly, in this movie Detective Callahan was fighting the lawlessness and corruption sweeping across his fine city. Chase scenes, shoot ‘em up scenes, and great quotes occur throughout the movie on the streets of San Francisco. A couple quotes come to mind today.
“Uh uh. I know what you're thinking. "Did he fire six shots or only five?" Well to tell you the truth in all this excitement I kinda lost track myself. But being this is a .44 Magnum, the most powerful handgun in the world and would blow your head clean off, you've gotta ask yourself one question: "Do I feel lucky?" Well, do ya, punk?”
The market’s rally since the Federal Reserve announced its decision to hold rates steady has investors jumping back into stocks and bonds. Prices are moving fast. Do I commit cash to this market? Should I buy the dip in one of the magnificent seven names? Or maybe you are asking yourself “is it time to invest in emerging markets again?” In all the excitement, it is easy to lose track of one’s purpose, the “why” of our investing. Without a rigorous and disciplined approach, it is easy to fall prey to the temptation of trying to quickly enrich our wealth. And you know how that story ends.
The other quote that comes to mind may also be useful to investors. In the final scene, on Pier 54, after picking off the corrupt police officers one by one, Detective Callahan confronts his corrupt boss. This time the boss is holding the gun and claims that “nobody is going to believe you, Harry. You’re a maniac”. The scene comes to a climax as the boss drives away and the car explodes. Stoically, Detective Callahan states simply: “A man’s got to know his limitations."
You must admit, that is a line we need to constantly remember as investors. What are your limitations? Are your limits based on risk? Are your limits based on environmental or other considerations? Do you have limits based on your age? Are your limits structured around when you will need your capital? Nobody wants to have a portfolio explode unexpectedly due to poor planning or lack of forethought. Understand your limitations BEFORE you invest, and your outcome will better reflect your objectives.
Moreover, I would add that one should continuously review and update your limitations, your investment boundaries, as your situation changes over time. We are happy to help in this process. Please feel free to call and let’s talk about it. You might even “Make my day”.
Ralph McDevittNovember 2, 2023
Any opinions are those of Ralph McDevitt and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance is not indicative of future results. Raymond James & Associates, Inc., member New York Stock Exchange/SIPC.
