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As I drove home from the office yesterday evening, I passed a few deer grazing on the side of the road. It’s a road where I frequently see groups of deer. For some reason, last night’s sighting triggered a slew of memories and lessons learned from over the years, all of which I can attribute to deer. I thought I would share some with you.

Think outside the box (1996). When my two sisters and I were young, we could be a little rambunctious. Taking us on a “deer hunt” was a tactic Ralph invented to calm us down. This entailed bundling the three of us into the car around dusk and driving down the very same road I now take home from work every day. We had to be quiet in the car so as not to scare the deer, and we would gaze silently out the windows, hoping to see one. When we did, we were elated – a successful deer hunt! Now as a parent myself, I see this exercise for what it really was; a way to get us out of our mother’s hair for a few minutes and have some quiet time in the car. However, we loved our deer hunts, and it makes me think about how to take something mundane and turn it into a treasured memory.

Understand your surroundings (2017). My parents’ cabin in Montana is roughly a 2-hour drive from the Bozeman airport. Flight times are often quite early or quite late. That means I do a lot of rural highway driving in darkness. I vividly remember the first piece of advice a Dillon resident gave me about driving to the airport in the dark, “Look for their eyes.” Deer’s eyes reflect brightly in your headlights, even if the rest of their body is obscured by the darkness. Now, when I drive at night in populous deer areas, I’m not scanning the middle of the road for a large mass; I’m scanning the edge of the road for 1 or 2 pinpricks of light to signal potential danger. A few years later, the same person noted deer are herd animals. If one deer runs across the road, it is probable another one will follow.

Expect the unexpected (2021). When Ralph had a cycling accident in 2021, we determined the culprit was a rogue deer colliding with him. Did we ever expect that, as an avid and experienced cyclist, a deer springing from the bushes would cause his most severe accident to date? We certainly did not. It is a reminder to hope for the best (e.g. a great workout on a sunny Friday afternoon) but be prepared for the worst (e.g. a hospital stay). And don’t get complacent.

Experience joy whenever you can (always). In 2022, at 4 weeks old, my son was too young to observe any Christmas traditions. But in 2023, we were able to attend his school holiday performance, dress him up in festive reindeer clothes, and enjoy him ripping wrapping paper off boxes on Christmas morning. He did not care what was inside – the tearing of paper was a gift in and of itself! All of it brought me and my husband immense joy. Whenever I see a holiday reindeer decoration, it always makes me think of Santa delivering joy all over the world on Christmas Eve!

To extrapolate each of these lessons to an investment setting, consider these thoughts:

Think outside the box. These days, we are inundated with blanket recommendations for what everyone should do. What is most important to you? If you have personal financial goals that are different, feel free to be an outlier! You are unique and your portfolio should reflect your unique nature.

Understand your surroundings. Markets do not operate in a vacuum. We preach this constantly, but it is important to understand the context of different market behaviors and take a long-term approach when building out a portfolio to meet your goals.

Expect the unexpected. The last few years have been full of “once in a lifetime” events. For example, in 2022 the S&P 500 lost over 18% and the US Aggregate Bond index simultaneously lost over 10%. In 2023, the S&P 500 gained over 24%. These events were beyond expectations in a big way. While that certainly makes for a bumpy ride, a well-diversified portfolio and a flexible financial plan has historically served investors well through tumultuous moments.

Experience joy whenever you can. When it all comes down to it, your money is a means to an end. Do the things that you love and find enjoyment in. Do so in a manner that suits you. And a final thought: science has proven that shared experiences bring more joy. We hope you, your family, and your loved ones have a joyful year.

Grace Loveland February 12, 2024

There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. The S&P 500 is an unmanaged index 500 widely held stocks that is generally considered representative of the U.S. stock market. One cannot invest directly in an index. The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.

Any opinions are those of Grace Loveland 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.

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